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Eurostat, C1, National accounts methodology. Indicators

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The export market share presents the share of each EU Member State in total world (or region) exports of goods and services. The indicator measures the degree of importance of a country within the total exports of the region/world. For the calculation at current prices, the market share refers to the world trade (world export market share). Losses in export market shares can occur not only because one country sees a decline in its exports but also when domestic exports and world exports do not grow at the same rate, creating a deterioration of the relative position at the global level.

The MIP scoreboard indicator is Export market shares (goods and services) - 5 year % change. Additional indicators published in the domain are:

• Export market shares by items - 1 year % change and % of world total
• Share of OECD exports

The methodological framework followed in the compilation of the Balance of Payments is defined in the IMF’s Balance of Payments and International Investment Positions Manual, Sixth Edition (BPM6). Until 2014, Balance of Payments Manual fifth edition (BPM5) was the reference for the data published by Eurostat.

For additional methodological references, one can consult the United Nations' Manual on Statistics of International Trade in Services (2010). The data source for total world exports (used as denominator) is provides by the World Economic Outlook, International Monetary Fund (IMF).

Data are compiled and disseminated for transactions and positions of total economy vis-a-vis rest of the world. 

The MIP scoreboard indicator is the percentage change of export market shares (goods and services) over five years, with a lower indicative threshold of -6%. The indicator is calculated as 5 year % change (comparing year Y with year Y-5) in order to capture structural losses in competitiveness that can accumulate over longer time periods. The calculation formula is: [[(EXP_c/EXP_world)_t - (EXP_c/EXP_world)_t-5] / (EXP_c/EXP_world)_t-5]*100.

The indicator is based on BoP data reported to Eurostat by the EU Member States. Starting from October 2014, definitions are based on the IMF’s Balance of Payments and International Investment Positions Manual, Sixth Edition (BPM6). The data source for total world exports (used as denominator) is provided by the World Economic Outlook, International Monetary Fund (IMF). The BoP is a statistical statement that systematically summarises, over a given period of time, all the transactions of an economy with the rest of the world. The balance of payments records all economic transactions undertaken between the residents and non-residents of a country during a given period. The current account together with the capital and the financial accounts form the Balance of Payments.

The components of the Current account are Goods, Services, Primary and Secondary income.

Goods covers 'general merchandise', 'non-monetary gold' and, since the implementation of the BPM6, 'net export of goods under merchanting'. The most important component, 'general merchandise', includes all movable goods whose ownership is transferred from a resident to a non-resident and vice versa. An export is marked as a credit (money coming in) and an import is noted as a debit (money going out).

Services are the second major category of the current account. In the production of data on International Trade in Services the references are the IMF’s BPM6 and the United Nations’ Manual on Statistics of International Trade in Services 2010. Services' items 'Manufacturing services on physical inputs owned by others (SA)' and 'Maintenance and repair services n.i.e (SB)' were newly introduced in the Services account under BPM6. Services are the result of a production activity that changes the conditions of the consuming units, or facilitates the exchange of products or financial assets. Services are not generally separate items over which ownership rights can be established and cannot generally be separated from their production.

When combined, goods and services together make up a country's balance of trade. The balance of trade is typically the biggest bulk of a country's balance of payments as it makes up total imports and exports. If a country has a balance of trade deficit, it imports more than it exports, and if it has a balance of trade surplus, it exports more than it imports.

Financial flows are marked as a credit (or exports, i.e. if a country has received money), a debit (or imports, when a country has paid or given money) or a net balance (credits minus debits). In accounting terms, the BoP is always zero, meaning that credits and debits balance. There might however be imbalances (a deficit or a surplus) of individual accounts of the BoP.

Any individual, corporation or other institution that provides information on the transactions or positions between the residents and non-residents of a country during a given period.

BoP statistical population includes all economic transactions between residents and non-residents. The coverage of the statistical population assured by reported transactions can be very different for different BoP items. Information on the transactions and positions can be provided by individuals, corporations or institutions.

The MIP scoreboard presents data for each EU Member State, as well as euro area (EA) and the European Union as a whole. 

The lengths of series vary according to country, details on data availability are available under the links: tipsex10; tipsex11; tipsex20; tipsbp60.

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The MIP headline indicator is calculated as 5 year % change - comparing year Y with year Y-5 . Data are also available in 1 year % change and % of of world total.

The reference period is the calendar year.

Since 2014, definitions and data published in the MIP scoreboard are based on the IMF’s Balance of Payments and International Investment Positions Manual, Sixth Edition (BPM6), and on Commission Regulation (EU) No 555/2012 on community statistics concerning balance of payments, international trade in services and foreign direct investment (amending Regulation (EC) No 184/2005, as regards the update of data requirements and definitions).
The United Nations' Manual on Statistics of International Trade in Services (2010) and the OECD Benchmark Definition of Foreign Direct Investment (BD4) are used as complements.

In the compilation of BoP, responsibility is shared between Eurostat and the ECB. A Memorandum of Understanding (with a BoP Annex) has been signed between the two parties.

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Regulation 2015/759 of 29 April 2015, amending Regulation (EC) No 223/2009 on European statistics of 11 March 2009 [recital 24 and Article 20(4)], 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 data.

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 For BoP quarterly data, a release calendar is disseminated on the website at http://ec.europa.eu/eurostat/news/release-calendar.

A release calendar for MIP scoreboard indicators is not available. BoP quarterly data are published in accordance with the Eurostat release calendar.

The MIP Regulation stipulates that “the Commission shall make the set of indicators and the thresholds in the scoreboard public” (Art. 4, para. 6, Regulation (EU) No 1176/2011 of 16 November 2011 on the prevention and correction of macroeconomic imbalances) and that “the Commission shall update the values for the indicators on the scoreboard at least on an annual basis” (Art. 4, para. 8).

In line with the Community legal framework and the European Statistics Code of Practice Eurostat disseminates European statistics on Eurostat's website (see §10 'Accessibility and clarity') respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably. The detailed arrangements are governed by Eurostat protocol on impartial access to Eurostat data for users.

The statistics underlying the MIP headline indicator are disseminated annually. MIP indicators are updated and released accordingly.

News releases on-line

The MIP Scoreboard indicators are used to identify emerging or persistent macroeconomic imbalances in EU countries. The Scoreboard is part of an annual exercise, where the first step consists of the compilation of an Alert Mechanism Report (AMR).

See data availability for the following tables:

tipsex10 Export market share, % of world exports (5 year % change); tipsex11 Export market shares by items (1 year % change); tipsex20 Export market shares by items (% of world total); tipsbp60 Export performance against advanced economies (5 year % change).

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The methodological framework followed in the compilation of the Balance of Payments is that defined in the IMF’s Balance of Payments and International Investment Positions Manual, Sixth Edition (BPM6).

Eurostat's mission is to provide the European Union with a high-quality statistical information service - see: Eurostat quality framework.

Moreover, the statistics underlying the Scoreboard indicators are subject to a specific quality assurance framework developed within the MIP context.

Quality is assured by the application of concepts according to the sixth edition of IMF Balance of Payments and International Investment Position Manual (BPM6) and thorough validation of the data delivered by countries.

For the quality assurance of the statistics underlying the MIP Eurostat and the DG Statistics of the European Central Bank signed a Memorandum of Understanding (MoU) establishing a mutual recognition of the respective ESS and ESCB quality assurance frameworks, when the Member States have designated their National Central Banks for producing the datasets: Balance of payments and international investment position statistics and Financial accounts.

Eurostat prepares national annual Quality Reports for the balance of payments, international trade in services and foreign direct investment in accordance with Commission Regulation (EC) No 1227/2010 of 20 December 2010 implementing Regulation (EC) No 184/2005 (OJ No L 283/3). It contains information on relevance, accuracy, timeliness, punctuality, accessibility, clarity, comparability and coherence. The latest overview report  "Quality report on balance of payments (BOP), international trade in services (ITS) and foreign direct investment (FDI)" provides analysis for data transmitted until September 2019.

The ECB publishes an Annual Quality Report on Euro area Balance of Payments and International Investment Position statistics. This report is the result of a Joint ECB-Eurostat Task Force on quality.

The quality assurance framework for the Macroeconomic imbalance procedure (MIP) follows a three-level structure:

The first level assesses the reliability and comparability of MIP underlying statistics and addresses relevant quality issues; it also enhances the communication on quality assurance of MIP statistics towards the European Parliament and Council, policy makers and the public at large. This level draws on the information gathered in levels two and three (see below).

The second level consists of domain-specific quality reports produced by Eurostat and the ECB summarising the main findings for the euro area or the EU Member States. Reports assess the underlying compilation process and its robustness, describe its legal basis and evaluate whether the statistics are in line with international statistical standards.

The third level consists of national quality reports (self-assessments) produced by the institution compiling the national statistics. Most of these reports are voluntarily published by Members States on the CMFB’s website and their availability depends upon the statistical domain.

The indicator Export market shares (5 year % change) is one of the headline indicators of the MIP Scoreboard. The MIP Scoreboard is used as an early warning system in the context of the macroeconomic surveillance of the EU Member states. It consists of a set of fourteen indicators, covering the major sources of macroeconomic imbalances. The aim of the scoreboard is to trigger in-depth studies, which will do analyses to determine whether potential imbalances identified in the early-warning system are benign or problematic.

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Data offer complete and consistent description of the components of the Balance of Payments and International Trade in Services (ITS) components with the geographical breakdown and in accordance with the IMF’s Balance of Payments and International Investment Positions Manual, Sixth Edition (BPM6). Recalculation of data series for statistics before 2014 according to the new methodology are provided by Member States on a voluntary basis.

The Introduction of the Statistical annex of each Alert mechanism report provides detailed information on data completeness. 

The indicators are associated with a high level of overall accuracy. Data transmitted by the Member States are checked in Eurostat for their consistency and plausibility. If any problem is found, Eurostat contacts the relevant Member State for checking the figures or confirming the changes made by Eurostat.
Data on goods are based on International Trade Statistics, which are often collected by customs' administrations. Data on services come from a variety of surveys where data can be reported either by banks or directly by enterprises or households.

Size of revisions is checked on regular basis, during each data production process and in the more detail in the annual quality report.

Asymmetries are another way of assessing the accuracy of bilateral statistics. Intra-EU/EFTA are regularly analysed in the annual quality reports and separately presented and discussed within the framework of the Balance of Payments Working Group. Eurostat organises also workshops to discuss asymmetries and better reconcile national data. Asymmetries with the United States are anlaysed in collaboration with the US Bureau of Economic Analysis and most recent analysis was published in paper Current account asymmetries in EU-US statistics — 2019 edition.

At the European level, accuracy of GDP is regularly monitored in the framework of the GNI (Gross National Income) Committee and technical aspects are regularly analysed in several working groups and technical committees.

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BoP and IIP Annual data are updated when the corresponding quarterly data are available.

Annual ITS and FDI data are released around 11-12 months after the reference period. Preliminary data are released 4 - 5 months after the reference period.

Punctuality depends on the delivery of basic data used for the calculation of the MIP indicators. Eurostat monitors closely punctuality of basic data delivery by countries. Generally countries meet delivery deadlines very well (44 days after the reference period for BoP monthly data, 82-85 days after the reference period for the complete quarterly BoP dataset and quarterly IIP and revaluations, 9 months after the reference period for annual international trade in services and foreign direct investment transactions, income and positions, 21 months after the reference period for activity breakdown of foreign direct investment transactions and positions).

The underlying methodological framework, defined in the BPM6, ensures a high degree of comparability across countries. Commission Regulation (EU) No 555/2012 contains the questionnaires, and also all details on the coding system, data format, and deadlines for transmission. Each country compiles its BoP statistics using data coming from a number of surveys and administrative sources.
Questionnaires and data requests with all details and explanations concerning requested item, geographical and activity breakdowns are included in Balance of Payments Vademecum.

Data are generally considered highly comparable over time. The methodology is revised according to the revisions of the sixth edition of IMF's Balance of Payments Manual (BPM6). In some countries, methodological breaks can affect time series (normally on a temporary basis). Backward calculations of time series are provided to ensure full time coherence in a case of methodological changes.

Consistency checks are possible with component data and with some data published by National Accounts domain (in particular with the figures appearing inside the Rest of the World account) and with aggregate figures on imports and exports of goods published by International Trade Statistics. However, even though both Balance of Payments and International Trade statistics provide data for the external trade in goods of a given country; the two data sets generally do not show the same figures. The two data sources have very different detail and serve different users' needs. Different methodologies are the main reason for discrepancies between the two data sets. 

More information on methodology of national data can be found on the Dissemination Standards Bulletin Board of the IMF (International Monetary Fund).

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Data are revised with the updated information transmitted by Member States, according to the timetable specified in the BoP Vademecum. Major changes in methodology are the result of legislation (or due to other reasons) and therefore announced in the Official Journal of the European Union.

Together with the publication of the annual data are revised the figures for the previous years. Major changes in methodology are the result of legislation (or due to other reasons) and therefore announced in the Official Journal of the European Union.

Data published by Eurostat are compiled on the basis of data provided by Member States.
Each year or quarter, national banks or national statistical offices of the Member States provide Eurostat with data according to a set of questionnaires approved by all Member States and designed to fulfil a set of requirements. The Balance of Payments Vademecum is the reference text for national BoP compilers. This document contains the questionnaires, but also all details on the coding system, data format, and deadlines for transmission.
Each country compiles its BoP statistics using the data coming from a number of surveys and administrative sources. Methods used for the collection and compilation of statistics differ among BoP items within a country, as well as among countries.

Data for BoP item Goods are generally based on International Trade in Goods Statistics, which are often collected by customs' administrations.

Data for BoP item Services come from a variety of surveys where data can be reported either by banks or directly by enterprises or households.

Annual

The Balance of Payments Vademecum is the reference text for national BoP compilers. Once data are compiled by national authorities in the reporting format they are transmitted to Eurostat.

Information on BoP compilation systems in individual countries could be found in each SDDS (metadata) country page published in the IMF's Dissemination Standards Bulletin Board in the section "Balance of Payments". A summary of the sources used for the compilation of BoP by members of the European Union can be found in the ECB publication European Union Balance of Payments and International Investment Position statistical sources and methods (November 2016).

Eurostat submits all data received from the reporting countries to a number of checks. These checks verify the plausibility of the data (e.g. the development of time series), their internal consistency (aggregates should match the sum of the sub-items), presence of outliers, size of revisions, their correspondence with data already disseminated by the same country on its NCB or NSI web-page. Validation rules are described in the Balance of Payments Vademecum.

Time of recording: in line with the BPM6, recording is on a transaction basis ("accruals principle"), meaning that transactions have to be recorded when economic value is created, transformed, transferred or extinguished. The main criterion is change of ownership. The change may be legal or economic.
Valuation: in principle, market prices are used.

In the compilation of the BoP, responsibility is shared between Eurostat and the ECB. A Memorandum of understanding (with a BoP Annex) has been signed between the two parties.

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Due to the extraordinary circumstances caused by the COVID-19 pandemics, in April 2020, the IMF World Economic Outlook did not include any data related to the volumes and values of world exports. Consequently, the 2019 MIP indicators on Export market shares, which use as a denominator the 2019 data on value or volume of exports of goods and services, were calculated using internally estimated data. Eurostat estimated the 2019 value of exports of goods and services using already available IMF country annual and/or quarterly data.