Hungarian Central Statistical Office

National Accounts Department

Budapest 1024, Keleti Károly u. 5-7., Hungary

National accounts data concern all data produced and disseminated for an economy according to the definitions and guidelines of the European System of Accounts (ESA 2010).

National accounts provide data for the total economy, but may also include breakdowns of the total economy (into sectors, industries, products, regions, etc.). National accounts provide data for several domains: annual and quarterly national accounts (main aggregates), sector accounts, financial accounts, supply and use and input-output tables, regional accounts and government finance statistics.

One of the main aggregates of national accounts is the change rate of the price-adjusted gross domestic product (GDP), which indicates the economic development of a country of region and is also referred to as economic growth rate.

In Eurobase, countries' data are presented following the usual data structure.

At national level, data are commonly available for:

- annual and quarterly national accounts: 'main aggregates'

- annual and quarterly sector accounts; presently in Hungary quarterly accounts are available for general government and for rest of the world

- annual financial accounts and balance sheets

- annual non-financial balance sheets

- supply and use and input-output tables

- annual and quarterly government finance statistics data: 'main aggregates', quarterly financial government accounts and government debt

- regional breakdowns of main national accounts variables and household accounts

- industry breakdowns of main national accounts variables

- industry by asset breakdowns (stocks and transactions)

- detailed data on taxes, social contributions and government expenditure by function

- pension entitlements in social insurance - not yet published in Hungary

The ESA 2010 provides a methodology on common standards, definitions, internationally harmonised classifications and accounting rules that are used for compiling national accounts on comparable bases.

The ESA 2010 defines classifications to be used for: institutional sectors, transactions in products, transactions in non-financial non-produced assets, distributive transactions, transactions in financial assets and liabilities, other changes in assets, balancing and net worth items, balance sheet entries, non-financial assets, financial assets and liabilities.

In addition, for several breakdowns ESA 2010 makes use of other classifications: NACE Rev. 2 for economic activities, CPA 2014 for products by economic activities, COFOG for the functions of government, COICOP for individual consumption by purpose, COPNI for classification of the purposes of non-profit institutions serving households, NUTS 2013 for regional breakdowns.

A full overview of classifications is available in:

- ESA 2010 Chapter 23 Classifications

- Eurostat's RAMON classification database

Hungary follows the standard of the European System of National and Regional Accounts (ESA 2010). This is the newest internationally compatible EU accounting framework for a systematic and detailed description of an economy. From September 2014 the data transmission from Member States to Eurostat follows ESA 2010 rules.

Economic activity: A*10 and A*64 aggregation levels of the NACE Rev.2 classification are used to define industry breakdowns in publications. Activities are broken into 88 activities during calculations at current prices. The data in prices of the previous year are available only by 64 activities.

Asset types: AN_F6 and AN_F10 breakdowns are used for quarterly and annual data on gross fixed capital formation.

Consumption by purpose: Household final consumption expenditure (HFCE) are classified by consumption purpose according to the COICOP classification. HFCE is available at 3-digit level in Hungarian publications, for calculation COICOP structure at 4-digit level is used.

Hungarian activity classification: TEÁOR'08

Classification of COICOP used in Hungary (the first 12 main groups are used by HFCE): https://www.ksh.hu/apps/meta.objektum?p_lang=EN&p_menu_id=310&p_ot_id=300&p_obj_id=0960&p_session_id=82059253

In Hungary COPNI is not used for the time being.

National accounts describe the total economy of a country. All units that have their centre of predominant economic interest in the economic territory of that country are covered.

In addition, several breakdowns of the total are described. Two of the most important breakdowns are the breakdown by institutional sector and the breakdown by NACE Rev. 2 activity. Exhaustiveness is required for each of the breakdown items.

Concerning the institutional sector breakdown, ESA 2010 distinguishes five mutually exclusive domestic institutional sectors: (a) non-financial corporations; (b) financial corporations; (c) general government; (d) households; (e) non-profit institutions serving households. The five sectors together make up the total domestic economy. Each sector is also divided into subsectors.

Regarding the activity breakdown, ESA 2010 applies NACE Rev.2. Activities can be broken down into several levels of detail, for example into 3, 10, 21, 38, 64 or 88 activities. At the 'highest' level a breakdown into 3 categories is defined: (a) agriculture, forestry and fishing; (b) mining and quarrying, manufacturing, electricity gas steam and air conditioning supply, water supply, sewerage, waste management and remediation activities, construction; (c) services.

In Hungary activities are broken into 88 activities during calculations, however data are published according to 64 activities. The data in prices of the previous year are available only by 64 activities.

All statistical concepts and definitions to be used in national accounts are described in Annex A of the ESA 2010 Regulation (link to blue book on ESA2010 methodology). The two main sets of tables concern: (a) the institutional sector accounts; (b) the input-output framework, and the accounts by industry.

The sector accounts provide, by institutional sector, a systematic description of the different stages of the economic process: production, generation of income, distribution of income, redistribution of income, use of income and financial and nonfinancial accumulation. The sector accounts also include balance sheets to describe the stocks of assets, liabilities and net worth at the beginning and the end of the accounting period. The variables/concepts described in the sector accounts include transactions in products, transactions in non-produced non-financial assets, distributive transactions, transactions in financial assets and liabilities, other changes in assets, non-financial and financial assets and liabilities.

The input-output framework, through the supply and use tables, sets out in more detail the production process (cost structure, income generated and employment) and the flows of goods and services (output, imports, exports, final consumption, intermediate consumption and capital formation by product group). These variables are broken down by industry (NACE Rev. 2) and product (CPA 2014).

ESA 2010 also encompasses concepts of population and employment. Such concepts are relevant for the sector accounts, the accounts by industry and the supply and use framework.

Regional accounts provide regional breakdowns for major aggregates such as gross value added by industry, gross fixed capital formation and household income. Regional breakdowns are based on the NUTS classification. National accounts concepts are also used for regional accounts.

In addition Annex A of the ESA 2010 Regulation addresses and defines numerous other concepts and definitions, such as the definition of: statistical units and their groupings, flows and stocks, accounting rules (valuation, time of recording, consolidation and netting).  The main features and principles for the compilation of national accounts can be found in Chapter 1.

Country text similar to the one for Eurostat? Or mention country particularity

In Hungary the ESA methodology and concepts are followed.

Following the ESA 2010 guidelines, in national accounts two types of units and two corresponding ways of subdividing the economy are used: (a) institutional unit; (b) local kind-of-activity unit (local KAU). The first type is used for describing income, expenditure and financial flows as well as balance sheets. The second type of units is used for the description of production processes, for input-output analysis and for regional analysis.

An institutional unit is an economic entity characterised by decision-making autonomy in the exercise of its principal function. A resident unit is regarded as constituting an institutional unit in the economic territory where it has its centre of predominant economic interest if it has decision-making autonomy and either keeps a complete set of accounts, or is able to compile a complete set of accounts.

A local KAU groups all the parts of an institutional unit in its capacity as producer which are located in a single site or in closely located sites, and which contribute to the performance of an activity at the class level (four digits) of the NACE Rev. 2.

An institutional unit comprises one or more local KAUs; a local KAU belongs to one and only one institutional unit.

In most cases the enterprise is the statistical unit in the production accounts in Hungary. Enterprises with several activities are classified in NACE according to their principal activity, which is the activity that contributes most to the gross value added that the enterprise generates. Thus the NACE classification of an enterprise refers to its principal activity. The enterprise is used as a proxy of the institutional unit. The only exceptions are the budgetary institutions. They report the cost of activities at a detailed activity level, which provides an opportunity to record within the institutional unit primary and secondary activities separately.

The national accounts population of a country consists of all resident statistical units (institutional units or local KAUs, see section 3.5). A unit is a resident unit of a country when it has a centre of predominant economic interest on the economic territory of that country, that is, when it engages for an extended period (one year or more) in economic activities on this territory.

National accounts are considered exhaustive. This means that all resident statistical units are covered.

The reference area for national accounts is the total economy of a country. The total economy of a country can be broken down into regions. The NUTS classification provides a single, uniform breakdown of the economic territory of the Member States of the EU.

National accounts data are usually compiled for years and quarters.

In general, the ESA 2010 transmission programme requires data starting in 1995 (years) and 1995Q1 (quarters) but some series start later. If backwards data exist, they may have been compiled according to earlier versions of ESA and can present conceptual breaks with those compiled under ESA2010. 

Regional data are available from 2000; data on employment (hours worked) are available from 2010; all other data are published in time series starting by 1995.

The concept of 'base period' is not applied in national accounts. Instead, for some national accounts variables the concepts of previous year prices and chain-linked volumes are applied, as stipulated in Commission Decision 98/715/EC. Expressing variables at the prices of the previous year allows the calculation of volume indices between the current time period and the previous year. After a reference period is chosen as a benchmark, volume indices can be chain-linked and then applied to variables at current prices of the benchmark year. This generates volume estimates for any period of observation.

Hungary currently uses 2005 as reference year for the compilation of chain-linked volumes. The method to compile quarterly chain-linked volumes is the annual overlap method.

With the exception of some variables concerning population and labour that are expressed in number of persons and hours worked, data series show all flows and stocks in monetary terms: in Hungarian national currency, in Hungarian forint.

In addition to measurement in current (market) prices, some national accounts variables are also expressed in previous year's prices and chain-linked volumes, see section 3.9. Furthermore, it is possible to derive growth rates and indices, and various other measures '(e.g. percentages, per capita data, data expressed in purchasing power standards)' can be applied as well.

The usual reference period to be used for presenting national accounts data is the calendar year for annual data and the quarter for quarterly data.

Two basic kinds of information are recorded: flows and stocks. Flows refer to actions and effects of events that take place within a given period of time (year or quarter), while stocks refer to positions at a point of time (usually the beginning or end of a year or quarter).

The reference period for input-output tables is every 5 years.

National accounts are compiled in accordance with the European System of Accounts (ESA 2010) which was published in the Official Journal as Annex A of Regulation (EU) No 549/2013. The ESA 2010 transmission programme is covered in Annex B

The ESA 2010 has the form of a Regulation and it provides for:

• a methodology (Annex A) on common standards, definitions, classifications and accounting rules that shall be used for compiling accounts and tables on comparable bases (link to blue book on ESA 2010 methodology);
• a programme of data transmission (Annex B) setting out the time limits by which Member States shall transmit to Eurostat the accounts and tables (link to ESA 2010 transmission programme).

Temporary derogations to the data transmission requirements have been granted to Member States, up to 2020, by the Commission Implementing Decision 2014/403/EU of 26 June 2014 thus allowing national data to deviate temporarily from the ESA 2010 transmission requirements. Hungary has derogation on some variables.

Some other legal acts with relevance for national accounts concern:

- Commission Decision 98/715 of 30 November 1998 and Commission Decision 2002/990 of 17 December 2002 on measurement of price and volumes in national accounts.

- Legal act on the excessive deficit procedure

Several separate acts, often regarding classifications such as: NACE Rev.2, CPA 2014, COFOG, COICOP, NUTS 2013.

On the Eurostat website, sections 'National accounts'  and 'Government finance and EDP', more legal acts relevant for national accounts can be found.

National accounts datasets are used both nationally and internationally by different organisations, policy makers and analysts. The national accounts data are reported to Eurostat within ESA 2010 Transmission Programme.

Regulation (EC) No 223/2009 on European statistics (recital 24 and Article 20(4)) of 11 March 2009 (OJ L 87, p. 164), stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society. The European Statistics Code of Practice provides further conditions that have to be respected by statistical offices in regard to statistical confidentiality (Principle 5).

Official statistical activity - including issues connected to confidentiality - is regulated in Hungary by Act CLV of 2016 on Official Statistics that entered into force on 1 January 2017 and by Government Decree 184/2017 (VII. 5) issued for the implementation of the corresponding act. According to this Act official statistical activity is a public service regulated by law, supporting evidence-based decision-making through the publication of statistical data serving official information dissemination and the general awareness of society.

In a statistical sense, confidential data means data which allow statistical units to be identified, either directly or indirectly, thereby disclosing individual information. To determine whether a statistical unit is identifiable, account shall be taken of all relevant means that might reasonably be used by a third party to identify the statistical unit. Although national accounts data are usually highly aggregated, there may be possible cases for detailed breakdowns of aggregates and/or small economies. In these cases measures should be taken in order not to disclose data of a separate statistical unit. Guidance on how to prevent disclosure can be found in the Handbook on Statistical Disclosure Control.

In line with the Confidentiality Policy (see in under 7.1) individual information is disclosed in Hungary. The confident data management, including methodological treatments, ensures that confidential data are not accessible and identifiable.

Good practice requires that new national accounts data and associated news releases are announced in a release calendar that is published well in advance of the respective releases. 

In Hungary dissemination calendar is made accessible via HCSO's website before the actual publication year.

HCSO's dissemenition calendar is easily available and accessible for users on the following link: www.ksh.hu/dissemination_calendar_tn.

It is also available in Excel format, where national accounts releases can be easily listed.

In line with the Community legal framework and the European Statistics Code of Practice (Principle 6 on impartiality and objectivity, Principle 13 on timeliness and punctuality and Principle 15 on accessibility and clarity), national accounts data that meet the quality standards, including relevant metadata, should be made available to users. Users should be informed when the data become available and how they can be accessed.

The Dissemination Policy of HCSO is available on the website.

New quarterly national accounts data are published each quarter: 4 times per year. In Hungary - in line with the EU requirements - quarterly national accounts data are disseminated in each quarter by t+45 days (Flash GDP) and by t+60 days. In case of revision of the annual data at t+9 months quarterly data are reconciled to the annual data and disseminated at the end of September.

Annual data are disseminated twice a year: once as a sum of the 4 quarters at t+2 months and the other publication is at t+9 months.

The most important results of national accounts are issued in news releases. New key national accounts data may also be presented in press conferences or press briefings. The exact dates are pre-announced in release calendars (see section 8.1 above).

First release on quarterly national data is disseminated by t+45 days. On the date of the dissemination indicated in the dissemination calendar, at 9 o'clock data are published. One hour before the news agencies interested in GDP-data can access them in a dedicated environment - called 'News Room' - where they can prepare their news releases and/or articles in order to send exactly at 9 a.m. paralel with the HCSO release. In the 'News Room' background information are provided and HCSO staff answers the journalists' questions.

The most important channel of publishing data is the webpage of HCSO, where predefined data tables (STADAT) and dissemination database are accessible free of charge.

Besides electronic dissemination national accounts data are included in data publications in print. The most important are the Statistical Yearbook of Hungary and Statistical Pocketbook of Hungary.

Theme specific statistical reflections are also prepared time to time, e.g. National accounts of Hungary or Hungary in figures.

In order to enable easy access to national accounts data, all validated national accounts data should be made available to users by publishing them in an online database.

Predefined data tables (STADAT)    (www.ksh.hu/engstadat)

Major data and indicators are included in this table system of ready-made tables. In the interest of easier orientation the tables are divided into 7 main topics - national accounts data can be found in particular in topics 'General economic indicators' and 'Regional statistics'.

Time series of annual data provide a deeper insight into the economic state of Hungary. Through the shorter time series of intra-year data monthly and/or quarterly changes can be followed. Longer term time series are released only on the main indicators (for example on GDP). Tables are free to download – in an excel format as well – and to print.

There is also a methodological guide (metadata) to facilitate the interpretation of the tables.

Dissemination database  (http://statinfo.ksh.hu/Statinfo/themeSelector.jsp?lang=en)

In this database homogeneous data groups are accessible, where user can define datasets and compile tables according to his/hers interest.

The compiled data can be downloaded (in Excel for example), or ready-made maps or graphs are at disposal. Methodological guide to facilitate the interpretation of the data (metadata) sets is also available through a link.        

Not applicable.

In addition to news releases and other publications (see sections 10.1 and 10.2), information on national accounts may be posted using social media.

HCSO is availableon the following public media:

- Twitter (Hungarian/English (https://twitter.com/StatsHungary)

- Facebook (Hungarian only)

- YouTube (https://www.youtube.com/user/kshvideok).

There is an RSS page also (https://www.ksh.hu/rss_eng) (English version is available).

The general methodological framework for the compilation of national accounts in the EU is ESA 2010.

In addition, several handbooks have been developed to help compilers to produce national accounts data. Some of the most important methodological manuals are the Handbook on quarterly national accounts, Manual on regional accounts methods, Eurostat Manual of Supply, Use and Input-Output Tables, Manual on Government Deficit and Debt. Also, guidance manuals on specific topics are available, e.g. compilation guide on land estimation, compilation guide on inventories, Manual on measuring Research and Development in ESA 2010.

The manuals above specifically apply to EU national accounts statistics. However, world-wide equivalents are often also available: SNA 2008, Quarterly National Accounts Manual, Handbook on Input-Output Table Compilation and Analysis, Government Finance Statistics Manual.

Quality Policy and Quality Guidelines of HCSO are available on the webpage. Annual quality reporting is already carried out for a couple of years for HCSO use, thus quality reports on National Accounts were also made over the past years.

Quality of national accounts data is assured by strict application of ESA 2010 concepts and by applying the guidelines of the ESS handbook for quality reports.

During the overall compilation process, national and regional accounts data undergo several kinds of quality checks, e.g. ex-ante (source statistics), ongoing (results), ex-post (methods used) and external checks (Eurostat, European or national Court of Auditors, IMF).

Quality Policy and Quality Guidelines of HCSO are available on the webpage.

Annual quality reporting is already carried out for a couple of years for HCSO use, thus quality reports on National Accounts were also made over the past years.

Annual quality reporting is already carried out for a couple of years for HCSO use, thus quality reports on National Accounts were also made over the past years. These reports include inter alia infomation on relevance, accuracy, reliability timeliness, accessibility, coherence, comparability, clarity, as well as basic methodological (metadata) issues. The quality report is accompanied by a self-assessement form where the major indicators (e.g. relevance, timeliness etc) are briefly assessed and a SWOT analysis is made by the producer unit.

Quality reports (ESQRS) for Hungary are made since 2016; at this time they are available in ESS Matadata Handler.

National accounts data provide key information for economic policy monitoring and decision making, for forecasting, for administrative purposes, for informing the general public about economic developments (directly or indirectly via news agencies), and as input for economic research.

At national level, Ministry of Finance, Hungarian National Bank, scientific and academic communities and economic researchers are the entities who most use national and regional accounts data.

National accounts data are used also by international organisations or institutions, like OECD, IMF, UNECE; on the other hand - due to the free access via the webpage - several other users can reach them from universities, research institutes.

User needs could be communicated via phone and e-mail or via web page of HCSO. Information services and data request services help our user to explain their needs. At least twice in a calendar year report is made on new user needs received and it is discussed by dissemination department and national department together. In all case users got feedback and a positive or negative answer for their requests.

Information services: http://www.ksh.hu/information_service

Data requests: http://www.ksh.hu/data_requests_home

EU-INFO Statistical Service: http://www.ksh.hu/eu_info_statistical_service

Press room: http://www.ksh.hu/pressroom_menu

Views and opinions of users of national accounts statistics can be collected and analysed as one of the tools to 'measure' the relevance of national accounts data.

User satisfactory survey in HCSO is regularly conducted but it is not topic-specific, thus no separate feed-back regarding national accounts data are available.

In most countries national accounts cover the domains national accounts main aggregates, government accounts, sector accounts regional accounts and supply and use tables. However, the content of the data on these domains as well as the (details of the) various breakdowns (by region, sector, industry, product, etc.) may deviate per country, depending on national needs and available sources.

The ESA 2010 transmission programme, consisting of 22 tables across all national accounts domains (see section10.3) defines the minimum national accounts data set that must be available in all Member States of the EU.

The overall completeness of datasets provided by HCSO is high and they are in line with the users's needs; majority of the tables are filled-in 100% covering nearly all mandatory data. There are only a few tables where data are not yet available for all variables and/or years. Besides mandatory data certain information is provided on voluntary base by HCSO.

In 2017 Hungary has made significant progress in case of Table T0117Q and regional accounts. Information by completeness rates can be seen in section 3.1.1 of National Reference Metadata in ESS Standard for Quality Reports Structure (ESQRS) - latest version for year 2017.

The accuracy of the national accounts depends on the quality of data of other statistical activities used as input. The accuracy of input data from statistical activities is monitored. Data is periodically revised and differences between new and old versions in each round of revision are analysed. Information about the latest revisions and the effect of changes usually are available in our publication called National accounts of Hungary, YYYY (2nd preliminary data), which is used to publish at the end of September. The latest publication can be found here:

http://www.ksh.hu/docs/hun/xftp/idoszaki/gdpev/egdpevelo17.pdf

Not applicable.

Not applicable.

National accounts data should become available to users as timely as possible, taking into account the frequency of the data (annual or quarterly), the character of the data (info on the structure of an economy or on conjuncture developments) and an adequate balance between accuracy and timeliness.

The ESA 2010 transmission programme defines the required timeliness for all national accounts tables. Quarterly tables should become available between 2 and 3 months after the quarter-end. The annual tables have to be transmitted between 2 months (main aggregates) and 36 months (supply and use tables) after the end of the reference year.

All Hungarian national accounts data were provided within the legal deadline.

Good practice requires that the dates on which national accounts data become available are pre-announced and that the pre-announced publication dates are met.

National accounts data transmissions in the framework of the ESA 2010 transmission programme should be punctually delivered to Eurostat at the timeliness defined in the transmission programme (or before).

Over the past years punctuality of Hungarian National Accounts data was among the highest in the European Union.

The geographical comparability of national accounts in Member States of the EU is ensured by the application of common definitions of the European System of Accounts ESA 2010). Worldwide geographical comparison is also possible as most non-European countries apply the SNA 2008 guidelines, and SNA 2008 is consistent with ESA 2010.

As the data for all reference periods are compiled according to the requirements of the ESA 2010, national accounts data are fully comparable over time. Also, in the case of fundamental changes to methods or classifications, revisions of long time series are performed, usually going far back into the past.

The coherence between the assessed annual and quarterly statistics submitted by Hungary is very high.

Hungary belongs to the countries whose GDP at current prices represents less than 1% of the corresponding Union total, and has limited transmission obligations for T801. B2A3G (Gross operating surplus and gross mixed income) of S11 and B6g (Gross disposable income) of S1M are thus not mandatory at quarterly level.

National accounts data are generally available since 1995 without any breaks in the series.

Within the system of national accounts there is full consistency between the domains: annual and quarterly national accounts, government accounts, sector accounts, financial accounts, regional accounts, supply and use tables. However, in practice full consistency may not always be possible and temporary discrepancies might occur. They are usually the result of vintage differences.

Primary statistics like structural business statistics (SBS), short term statistics (STS) and labour force statistics (LFS) are widely used as input for national accounts. However, there is no full consistency between these statistical domains and national accounts. Main reasons are differences in concepts/definitions and in coverage. Balance of payments is also used as an important source for national accounts. The definitions and coverage of balance of payments, as defined in the BPM6 manual, are fully harmonised with those in ESA 2010. Therefore, balance of payments variables are in principle fully coherent with the corresponding national accounts variables.

In case of the national accounts data for Hungary full consistency is a temporary feature for about 10 calendar days in January due to vintage effect.

See section 15.3 (Coherence - cross domain).

The internal coherence of Hungarian data is generally very high. They are also coherent in terms of additivity.

Detailed information on internal coherency can be seen in section 6.2 of National Reference Metadata in ESS Standard for Quality Reports Structure (ESQRS) - latest version for year 2017.

Not available.

National accounts data are subject to continuous revisions as new input data become available. They are called routine revisions and entail regular revisions of country data and of the European aggregates, which are derived from the former.

More rarely, exceptional revisions (called benchmark revisions) will result from major changes in data sources, classifications or methodology. For example, when changing from ESA95 to ESA 2010, a benchmark revision occurred at country level and at euro area/EU data level.

Two Task Forces developed proposals for a more harmonised approach for benchmark and routine revisions. The one under the auspices of the Directors of Macroeconomic Statistics (DMES) dealt with benchmark revision policy, the other under the auspices of the Committee on Monetary, Financial, and Balance of Payments Statistics (CMFB) on the European Harmonised Revision Policy dealing with routine revisions. 

The information on revision policy in Hungary is accessible online, where the timing of quarterly and annual revisions is detailed.

    - General revision policy of HCSO: (https://www.ksh.hu/docs/bemutatkozas/eng/en_ksh_adatfelulvizsgalat_2014.pdf)

    - The production of GDP (metainformation) (https://www.ksh.hu/apps/meta.objektum?p_lang=EN&p_menu_id=110&p_ot_id=100&p_obj_id=QPT&p_session_id=30885022)

Hungary plans to review its revision policy regrding national accounts mainly in line with the harmonised European revision policy, however, it will take some time to achieve full harmonisation.

While revisions should be seen as a process to progressively improve the quality of national accounts as e.g. better sources and/or methods become available, the availability of metadata on revisions is a key element for understanding  national accounts data and revisions between subsequent releases.

Therefore, information on the main reasons for revisions and their nature (new source data available, new methods, etc.) as well as possibly quantitative and qualitative assessment on the average size of revisions and their direction based on historical data is required.

All national accounts data are subject of annual revision due to the following reasons:

- introducing changes due to the usual routine revision,

- small data corrections because of error or faulty data were detected,

- taking into account methodological changes and

- continuous work on action points raised during GNI and EDP verification exercises and existing derogations.

Major (large) revisions: like NACE Rev.2 was introduced into national accounts - in line with Regulation No 715/2010 of the Council - and supply and use tables (SUT) were integrated in the production process of national accounts in September 2011. The latest major revision was introduced in September 2014. The methodology for compiling national accounts changed because on 21 May 2013 the European Union adopted Regulation (EU) No 549/2013 of the European Parliament and of the Council. Its annex determines at the same time the methodology for compiling national accounts in member countries. In addition to the ESA changeover, methodological changes required by Eurostat due to GNI reservations were also carried out in September 2014 and onwards.

All information about the latest revisions can be found in our annual publications. Our meta site (Main methodological improvements since 1995) contains the links of the publications: https://www.ksh.hu/apps/meta.objektum?p_lang=EN&p_menu_id=110&p_ot_id=100&p_obj_id=QPT&p_session_id=26921634

Sources used for national accounts estimations are own data collections of HCSO and administrative data takeover from other government offices and institutions.

National accounts department and data collector departments of HCSO regularly discuss the yearly National Statistical Data Collection Programme (OSAP) and the contents and specifications of surveys to have the necessary detailed data for the national accounts estimations.

HCSO has bilateral agreements with institutions which collect statistics in their own fields of work and with holders of administrative data collections (records, registers, databases, etc.) on statistical cooperation are signed. More than 10 signed agreements exist between HCSO and other public data providers, of which data are used for national accounts purposes.

The major data sources for National Accounts in Hungary are the following:

• data from different statistical data collections carried out by HCSO (for example business statistics, foreign trade, household budget survey etc.) Data collections of HCSO are available in our website (only in Hungarian): https://www.ksh.hu/osap
• taxation data
• data on Government sector

Data collections and their frequency are available in our website (It contains all the data collections of HCSO and it is available only in Hungarian):

https://www.ksh.hu/osap

In Hungary National accounts department does not collect data but receives them from other departments or institutions. National accounts department has one direct data collection targeting the economic information of the recognised churches.

Statistical data are collected from respondents by electronic tools. Businesses are reporting via KSH-Elektra (electronic on-line application), while in case of household using of mobile tools (laptop, PDA) is the practice - however for internet-based applications are available also.

Majority of external data from other institution are received by HCSO via an application (KARÁT).

HCSO usually has a written agreement and technical protocol for cooperation with other institutions (e.g. with Hungarian National Bank) on the details of the data transmission (content, date etc.)

Data validation refers to any activity aimed at verifying that the value of a data item comes from a given set of acceptable values. It is a key task performed in all statistical domains and particularly important for national accounts, which is a key dataset for economic analysis and policy decisions.

In order to increase overall data quality and workflow efficiency, the European Statistical System (ESS) is moving towards more harmonisation of validation activities including the definition of common standards, tools and support for implementation (see ESS validation website). National accounts are a pilot in this area. An ESA 2010 Task Force on validation was established in 2015 to agree and document validation rules in an ESA 2010 validation handbook and progressively implement them in a pre-validation service for national accounts data.

The confrontation of data from different sources is an integral part of the national accounts compilation. Source data used in national accounts undergo a sequence of checks. For the validation of national accounts data, minimum validation rules agreed with Eurostat are applied and metadata to support the validation process with respect to revisions and outliers are provided. 

The final validation tool is the SUT, which is available at this time t+33.

In Hungary, the production approach is considered to be the dominant estimation method for compiling GDP; as the estimation of production is supported by the most reliable and accurate sources. The production account relies on a great extent on administrative sources. These are supplemented and combined with statistical surveys. The content and accounting rules applied in the administrative sources differ mainly by institutional sectors. So different measures should be taken to ensure the transition from private accounting and from government accounting to ESA 2010 concepts. Consistency is obtained via balancing process.

Estimations at current prices are made according to sectors and industries at NACE 4-digit level.

National accounts differ on a number of points from business accounts, so to compile national account several adjustments have to be made on the basic data. The adjustments are carried out at 4-digit level of NACE. These adjustments are data validation, conceptual adjustments, exhaustiveness adjustments and balancing adjustments.

Data validation refers to correcting data of individual data providers based on individual investigation. Conceptual adjustments are adjustments designed to bring basic data into line with ESA 2010 definitions. The exhaustiveness adjustments affecting all three approaches to GDP are holistically applied across the three measure of GDP. There are two types of balancing adjustments: adjustment resulting from SUT balancing after 33 months of the reference year and macro balance between production and expenditure sides.

Household final consumption expenditure

Household final consumption expenditure is estimated by commodity groups and by sources of income. Commodity groups are classified by COICOP. Concerning how products are being procured (how households acquire the product), three categories of consumption expenditure are distinguished: own-account products; wages and salaries in kind; and purchased goods and services. Agricultural products (used direct methods) and imputed rent (used the user cost methods) are the two major types of consumption from own-accounts-production accounted in the Hungarian national accounts. Wages and salaries in kind are estimated using labour cost survey, tax declarations of enterprises and financial reports of budgetary institutions as sources. According to the bookkeeping rules the costs of wages and salaries in kind can be separated from other costs.

To estimate purchased goods and services, the household budget survey (HBS) and the Retail Trade survey are the main data sources, but usually these data are not used directly. Instead of that the current values are extrapolated at commodity groups’ level. The previous year’s current price figures are extrapolated with the value indices (previous year=100.0) derived from the corresponding data sources. In the second step the extrapolated values are adjusted to meet the definitions and concepts of National Accounts (insurance, game of chance, FISIM).  HFCE as a total refers to the consumption of resident households (national concept), though the detailed calculation is made for domestic consumption. To arrive from domestic concept to national concept the expenditure of resident household abroad is added and non-resident spending Hungary is deducted from the total domestic consumption expenditure. For the transition items two surveys are in use.

NPISHs final consumption expenditure

Final consumption expenditure of NPISHs covers various items and calculated as the difference between the NPIs’ non-market output minus their sales and fees received, plus the value of goods and services supplied to households without any transformation produced by other producers.

Government final consumption expenditure

In the case of services produced by the government, final consumption expenditure is estimated as follows: output minus own account GFCF minus sales of eventual market output minus fees for non-market sales. Both output and fees are available by industries therefore consumption is also available in the same structure. The next step is the split between individual and collective consumption. Individual consumption includes canteens in workplaces and schools, accommodation in colleges, a large part of education, health care, social assistance, sport, cultural services and other services. The rest is accounted as collective consumption.

Social transfers via market producers include: consumer subsidy on public transport; subsidies of pharmaceuticals and medical appliances bath for therapeutically purposes travel reimbursement to visit health care providers’ compensation of free medical supply; contribution to energy consumption of households.

Gross fixed capital formation (GFCF)

The estimation is carried out by industries, by assets categories and by sectors.

GFCF includes: the acquisition and own account production of dwellings, new buildings and other new structures, machinery, equipment and transport equipment (including military weapons), accounting all the imported assets as new assets; the acquisitions and disposals of existing fixed assets of domestic origin; major improvements on fixed assets; the acquisition of fixed assets by financial leasing; the costs of ownership transfer and other charges related to fixed assets (planning fees and other costs); investments in breeding and draught animals, plantations (forests, vineyards and orchard); capital formation of intellectual property products, including R&D, software and databases, mineral exploration and evaluation, entertainment, literary or artistic originals and other intellectual property products; major improvements on land, (building) sites;  the cost of ownership transfers related to land transactions.

In the investment statistics the value of acquisitions of fixed assets includes the purchase price reduced with rebates and increased with additional prices, together with transport, storage, groundwork, installation, testing and starting costs, the commissions concerning the acquisitions, consignment fees, taxes and custom duties – customs clearance costs and surcharges – related to the procurement, non-deductible value added tax levied beforehand and other incidental costs. The value of the gross fixed capital formation does not include the deductible value added tax. As the valuation of the basic statistics is adequate to the ESA2010 requirements no adjustment is needed in the case of acquisition of new fixed assets for national accounts purposes.

Changes in inventories

Changes in inventories are estimated separately by types of goods, by sectors and by industries. Changes in inventories are estimated quarterly due to the velocity of turnover of the inventories and its seasonality manner. Data are derived from the Short Term Statistics.

Holding gains and losses is result of holding assets over time without transforming them in any way. Holding gains and losses are removed from changes in inventories, on a quarterly basis, in both production and expenditure side.

Acquisitions less disposals of valuables

Precious stones and metals, antiques and other objects, such as paintings, sculptures, etc. and other valuables (such as jewellery fashioned out of precious stones, metals and collectors’ items) are accounted as valuables. Data for estimation of the value of these items come from the external trade statistics and from the common database (KAB).

Exports and imports of goods and services

External trade data on goods compiled according to national concept are the starting point for national accounts. Some correction are necessary. The main adjustments for national accounts purposes are the following: correction relating to trade of the non-established traders (VAT-registration); adjustment concerning return of goods; and the inward and outward processing goods are valued at gross value in external trade statistics and at net value in national accounts. The conversion between two valuations will be explained later (see manufacturing services on physical inputs owned by others).

Other adjustments of exports and imports on goods needed for national accounts purposes: bunkers; merchanting; factory-less manufacturing; high-value goods; illegal goods (smuggling of tobacco, drugs)

Exports recorded in external trade in goods statistics are measured at F.O.B value but exports registered in other sources are reported or estimated at invoice value and the F.O.B value is not calculated.

The imports recorded in external trade in goods statistics are measured at statistical (C.I.F type) value but it have to be registered at F.O.B value in the national accounts. The C.I.F/ F.O.B conversion is calculated with the rates computed by partner countries. The data of external trade in goods statistics and other information from transport companies have been used to calculate the conversion rates. The supplementing import (bunkers, merchanting, etc.) is measured at invoice valued and F.O.B value is not computed for these items. The transport services are corrected with the value of the C.I.F/ F.O.B conversion. The conversion values are broken down between export and import of rail, road, inland waterway and pipeline transport with flat rates.

The main data sources of exports of services are the international trade in services quarterly survey and the tourism demand quarterly survey, other different information (for example data from administrative sources or collected by National Bank)  and external trade in goods statistics relating to manufacturing services on physical inputs owned by others.

The following types of services are recorded: transport services; telecommunication services; construction services; computer and information services; charges for the use of intellectual property; other business services; personal, cultural and recreational services; financial services; insurance services; FISIM; government services; trade of ownership rights; maintenance and repairing services; manufacturing services; travel (tourism) of which: Illegal services (prostitution, consumption of drugs).

Compensation of employees

Compensation of employees includes wages and salaries and employers' social contributions which are further divided into actual and imputed items. Wages and salaries include all gross payment in cash as well as goods and services in kind provided by employers to the employees.

Compensation of employees is estimated according to accounting standards and rules. In the first step of the compilation process the category is estimated separately by individual data sources and by institutional sectors. Data are arranged into three main components: gross wages, other labour costs and employers’ actual social contributions.

Taxes on production and imports

In the course of accounting taxes and subsidies, cash-flow data from the report on the execution of the state budget are used as basic data. Among the possibilities for accrual accounting of taxes and social contributions offered by the 2516/2000 Regulation of the European Parliament and the Council, the time adjusted cash method is applied. This choice was is influenced mainly by the fact that accurate cash-flow data are available. As only taxes and subsidies paid actually are accounted, no adjustment is required with the amount of taxes declared but not paid.

Taxes recorded under this heading can be classified in the following categories: Value added tax (VAT); Taxes and duties on imports; Taxes on products, except VAT and import taxes; Other taxes on production and imports:  taxes on building sites; Taxes on use of fixed assets and vehicles; Taxes on payroll or workforce.

Subsidies

Subsidies are current unrequited payments of the government or the EU to resident producers with the aim of influencing volumes, prices or remuneration of production factors.

Subsidies on products are direct payments for producing, selling (exporting) utilization products, services and production factors. D.39 Other subsidies on production cover subsidies which are not classified as subsidies on products and are receivable by resident producers as a consequence of their involvement in production. They include: subsidies on payroll and workforce; subsidies on agricultural activities; other subsidies.

Gross operating surplus

Gross operating surplus is the income of producers estimated as the balancing item of gross value added by activities at basic prices less compensation of employees less other taxes on production plus other subsidies on production. In non-market activities of general government and NPISHs, gross operating surplus mainly equals the consumption of fixed capital which is estimated by the perpetual inventory method.

Gross mixed income

Gross mixed income is producers classified into household sector, except gross operating surplus from imputed rent. The category is estimated as residual item and is equal to gross value added less compensation of employees paid by unincorporated enterprises to their employees less other taxes on production plus other subsidies on production.

Different type of adjustments are made during data compilation in Hungary. Conceptual adjustments and exhaustiveness adjustments are adjustments designed to bring basic data into line with ESA 2010 definitions. Balancing adjustments are made to ensure equation among calculation results from different estimation ways. Finally seasonal and calendar day adjustments are used to be able to distinguish trends, seasonal components and residuals in quarterly time series, where it is applicable.

According to the current practice Hungary uses TRAMO/SEATS method and JDemetra+ 2.2.0 software for seasonal adjustment and mainly manual modelling. The model is identified annually, and parameters are estimated every quarter. Direct approach is used to calculate aggregates. During seasonal adjustment the following types of outliers based on tests and relevant expert’s information are identified: additive outlier, temporary change and level shift. Working day and leap year effects are tested annually such as moving holidays too. Hungarian specific calendar is used for adjustment.

Summary about seasonal adjustment is available at the link below:

https://www.ksh.hu/docs/eng/xftp/modsz/eszezonalis_kiig.pdf

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