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For more information on this release:
E-mail: nat_acc@cso.ie Michael Connolly (+353) 1 498 4006 Peter Culhane (+353) 1 498 4382
For general information on CSO statistics:
information@cso.ie (+353) 21 453 5000 Visit StatCentral.ie, the portal to Ireland's official statistics On-line ISSN 2009-5600
CSO statistical release, 02 August 2017, 11am

Quarterly Institutional Sector Accounts Non-Financial

Quarter 1 2017

Seasonally Adjusted Gross Household Saving by Component€million
Gross Disposable Income (B.6g + D.8)Final Consumption Expenditure (P.3)Gross Saving Ratio
Q4 201624,78322,9577.4%
Q1 201724,91123,3106.4%

Household Saving Declines in First Quarter of 2017

Household Income and Expenditure
go to full release

The seasonally adjusted quarterly gross disposable income of households and non-profit institutions serving households (S.1M) was €24,911m in Q1 2017 – an increase of €128m or 0.5% compared with Q4 2016. There was also an increase in adjusted household expenditure (P.3) of €353m (1.5%) over the same period (€23,310m in Q1 2017 compared with €22,957m in Q4 2016). On a seasonally adjusted basis, the derived gross savings ratio stood at 6.4%, down from 7.4% in the last quarter of 2016 (see Background Notes for more information).

Rise in Annual Gross Saving for the Overall Economy

Gross saving (B.8g unadjusted) for the total economy (S.1) increased by €3,852m, from €20,386m in Q1 2016 to €24,238m in Q1 2017 (see Summary Table). This increase was spread across all sectors, with the Government (S.13) result going from a negative to a positive gross saving value.

These Institutional Sector Accounts incorporate the revised data in the CSO's most recent National Income and Expenditure 2016 publication. The seasonally adjusted data series which includes Gross Disposable income, Personal Consumption of Goods and Services and Gross Savings of the Household and NPISH sector is available at www.cso.ie/shorturl.aspx/99. The entire unadjusted series for all variables published in this release are also available there.


Decrease in Net Borrowing of Government

The net saving (B.9) deficit of Government totalled €1,363m in the first quarter of this year, an improvement of €475m on the Q1 2016 deficit of €1,838m. The largest single cause of this change was increased revenue from taxes on production (D.2).

Non-financial (S.11) and Financial (S.12) Corporations

The gross saving (B.8g) of non-financial corporations (S.11) was €21,184m in Q1 2017, €1,721m higher than €19,463m of Q1 2016. The main explanation for this increase is the growth in gross operating surplus (B.2g), from €30,508m to €32,969m. The sector had net borrowing (B.9) of €1,719m in the quarter, a reversal of the net lending of €6,027m in the equivalent period of 2016. The main driver of this change to net borrowing was the funding required for acquisitions of non-produced non-financial assets (N.P.)  from the rest of the world (S.2) in the first quarter of this year.

Financial corporations had gross saving of €1,632m in Q1 2017, an increase of €947m on the same period last year. This was primarily due to increased net investment income (D.4).

Rest of the World Sector (S.2)

The net lending (B.9) by the rest of the world to Ireland amounted to €2,563m in Q1 2017 compared to net borrowing of €4,247m in Q1 2016.  The increase in lending to Ireland reflects the funding required by non-financial corporations (S.11) for acquisition of large assets (N.P.) from abroad.

Summary Table Quarterly Accounts by Institutional Sector, Q1 2016 - Q1 2017€million
  Key VariablesQuarterS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
(a)B.1*gGross Domestic ProductQ1 2016 64,6085,51543,0683,8586,1046,064
   Q2 2016 65,4474,40444,6154,2485,9986,182
   Q3 2016 70,3515,63447,7334,4725,8016,709
   Q4 2016 75,1624,74352,8525,0195,7376,811
   2016 275,56720,296188,26817,59723,64025,766
   Q1 2017 69,2095,51846,5924,2926,2766,531
           
(b)B.2g/B.3gGross Operating Surplus /Q1 2016 38,8652130,5082,2591,0725,006
  Mixed incomeQ2 2016 40,5032131,7422,3951,0725,273
   Q3 2016 44,0902334,4392,6971,0725,860
   Q4 2016 50,4022439,2183,2131,0726,875
 2016 173,86089135,90710,5644,28723,014
 Q1 2017 41,968232,9692,4591,1015,436
           
(c)D.1_D.4Net Primary IncomeQ1 2016 13,2550-10,387-1,4074,32520,725
   Q2 2016 14,1200-9,781-1,9844,61021,275
   Q3 2016 12,7880-11,209-1,6854,63021,052
   Q4 2016 13,7230-10,728-1,2903,82021,921
   2016 53,8870-42,106-6,36517,38584,973
   Q1 2017 14,8870-11,230-6914,91821,890
           
(d)B.5gGross National IncomeQ1 2016 52,1202120,1208525,39625,731
  = (b + c)Q2 2016 54,6232121,9614115,68226,548
   Q3 2016 56,8792323,2301,0125,70226,912
   Q4 2016 64,1262428,4901,9234,89128,797
   2016 227,7478993,8014,19921,671107,987
   Q1 2017 56,854221,7391,7686,01927,326
           
(e)D.5_D.7Net Current TransfersQ1 2016 -9440-6575172,171-2,975
   Q2 2016 -6650-2,091854,201-2,860
   Q3 2016 -8160-8964502,232-2,602
   Q4 2016 -1,2020-2,793-656,785-5,129
   2016 -3,6270-6,43798615,389-13,566
   Q1 2017 -9200-5555642,571-3,501
           
(f)B.6gGross Disposable IncomeQ1 2016 51,1762119,4631,3697,56722,756
  = (d + e)Q2 2016 53,9582119,8704969,88323,687
   Q3 2016 56,0632322,3341,4627,93424,310
   Q4 2016 62,9242425,6971,85811,67723,668
   2016 224,1208987,3645,18537,06194,421
   Q1 2017 55,935221,1842,3338,59023,825
           
(g)P.3 + D.8Use of Disposable IncomeQ1 2016 -30,78900-684-8,043-22,062
   Q2 2016 -30,27000-691-8,296-21,284
   Q3 2016 -31,01200-694-8,891-21,427
   Q4 2016 -32,89600-697-8,648-23,551
   2016 -124,96800-2,766-33,878-88,324
   Q1 2017 -31,69600-700-8,418-22,578
           
(h)B.8gGross SavingQ1 2016 20,3862119,463685-476694
  = (f + g)Q2 2016 23,6882119,870-1951,5872,404
   Q3 2016 25,0512322,334768-9572,882
   Q4 2016 30,0282425,6971,1613,028117
   2016 99,1528987,3642,4193,1836,097
   Q1 2017 24,238221,1841,6321721,247
           
(i) Changes in Capital AccountsQ1 2016 -60021-261-34-428102
   Q2 2016 -10,16521-8,228-365-490-1,103
   Q3 2016 -7,88023-6,911-323250-919
   Q4 2016 -13,47924-11,290-421-589-1,204
   2016 -32,12589-26,689-1,144-1,257-3,125
   Q1 2017 -10,3012-8,862-124-600-717
           
(j)P.51CConsumption of Fixed CapitalQ1 2016 15,539 13,1742709341,160
   Q2 2016 15,600 13,2292719341,165
   Q3 2016 15,692 13,3132739341,172
   Q4 2016 16,062 13,6462809341,202
   2016 62,893 53,3631,0943,7364,700
   Q1 2017 16,500 14,0412889351,237
           
(k)B.9Net lending (+) / Net borrowing (-)Q1 2016-4,2474,247426,027381-1,838-364
  = (h + i) - jQ2 20162,077-2,07742-1,587-832163136
   Q3 2016-1,4781,478452,110172-1,640791
   Q4 2016-486486497614601,506-2,289
   2016-4,1344,1341787,312182-1,810-1,727
   Q1 20172,563-2,5635-1,7191,221-1,363-707
Table 1.2 Generation of Income Account€million
RESOURCES (RECEIVED)S.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.1*gGross Domestic Product  69,2095,51846,5924,2926,2766,531
D.3Subsidies, Received433 4332131390081
USES (PAID)
D.1Compensation of Employees21,23413621,099 13,2631,7465,175915
D.2Taxes on Production and Imports, Paid6,575 6,5755,729499870261
B.2g/ B.3gGross Operating Surplus/ Gross Mixed Income  41,968232,9692,4591,1015,436
Table 1.3 Allocation of Primary Income Account€million
RESOURCES (RECEIVED)S.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.2g/ B.3gGross Operating Surplus/ Gross Mixed income  41,968232,9692,4591,1015,436
D.1Compensation of Employees21,23415821,076    21,076
D.2Taxes on Production and Imports, Received6,575746,501   6,501 
D.4Property Income49,70529,82419,881 2,62615,8693161,070
D.41Interest17,1585,21911,939 -30411,97234236
D.42Distributed Income of Corporations7,7854,2493,536 1162,818255346
D.43Reinvested Earnings on Direct Foreign Investment14,91611,4203,495 2,81468200
D.44Other Investment Income9,7698,936834 03970436
D.45Rents77 77 002651
USES (PAID)        
D.3Subsidies, Paid43355378   378 
D.4Property Income49,70517,51232,193 13,85616,5601,522256
D.41Interest17,15810,6886,470 1,3683,3751,522205
D.42Distributed Income of Corporations7,7852,9314,854 3,7861,06800
D.43Reinvested Earnings on Direct Foreign Investment14,9163,49511,420 8,6752,74500
D.44Other Investment Income9,7693979,372 09,37200
D.45Rents77 77 260051
B.5gGross National Income  56,854221,7391,7686,01927,326
Table 1.5 Secondary Distribution of Income Account€million
RESOURCES (RECEIVED)S.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.5gGross National Income 56,854221,7391,7686,01927,326
D.5Current Taxes on Income, Wealth, etc.5,683205,664   5,664 
D.61Social Contributions4,62004,620 01,4623,1580
D.62Social Benefits other than Social Transfers in kind6,598846,513    6,513
D.7Other Current Transfers5,9602,1153,845 1372,238681,403
USES (PAID)        
D.5Current Taxes on Income, Wealth, etc.5,683195,664 45712205,085
D.61Net Social Contributions4,62004,620    4,620
D.62Social Benefits other than Social Transfers in kind6,598796,519 07625,7570
D.7Other Current Transfers5,9601,2014,759 2352,2525611,712
B.6gGross Disposable Income  55,935221,1842,3338,59023,825
Table 1.6 Use of Disposable Income Account€million
RESOURCES (RECEIVED)S.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.6gGross Disposable Income55,935221,1842,3338,59023,825
D.8Adjustment for the Change in Pension Entitlements7000700    700
USES (PAID)        
P.3Final Consumption Expenditure  31,696   8,41823,278
D.8Adjustment for the Change in Pension Entitlements7000700  700  
B.8gGross Saving  24,238221,1841,6321721,247
Table 1.7 External Account€million
RESOURCES (RECEIVED)S.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
P.7Imports of Goods and Services62,344
D.1 to D.8Primary Incomes and Current Transfers101,50832,27569,233     
USES (PAID)        
P.6Exports of Goods and Services84,188
B.11External Balance of Goods & Services-21,844
D.1 to D.8Primary Incomes and Current Transfers101,50819,00182,507
B.12Current External Balance -8,570      
Table 1.8 Change in Net Worth due to Saving and Capital Transfers Account€million
LIABILITIESS.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.8gGross Saving 24,238221,1841,6321721,247
B.12Current External Balance-8,570
D.9Capital Transfers4585453 1750123155
ASSETS        
D.9Capital Transfers4581456 68033058
P.51cConsumption of Fixed Capital   16,500 14,0412889351,237
B.10.1Changes in Net Worth due to Saving and Capital Transfers-832-8,5677,73427,2501,345-970107
Table 1.9 Acquisition of Non-Financial Assets Account€million
LIABILITIESS.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.10.1Changes in Net Worth due to Saving and Capital Transfers-832-8,5677,73427,2501,345-970107
P.51cConsumption of Fixed Capital 16,500 16,500 14,0412889351,237
ASSETS        
P.5Gross Capital Formation15,668 15,668-211,8814121,3282,050
NPAcquisitions less Disposals of Non-Produced Assets0-11,12911,129 11,129000
B.9Net Lending (+)/ Net Borrowing (-)02,563-2,5635-1,7191,221-1,363-707

Background Notes

Description of Institutional Sectors

In the sector accounts, Institutional Sectors are distinguished not in terms of the nature of their production activity (such as agriculture, industry, services, etc.) but rather in terms primarily of the institutional form of the units that make them up. Thus companies, whether engaged in commercial non-financial or financial business, are grouped in a different sector from households (even though the latter are in many cases also engaged in commercial production) and from government or other non-market producers such as voluntary agencies.

Institutional Sectors

The classification system is that of the European System of Accounts 2010 (ESA2010). The sectors and sub-sectors distinguished in the present publication are as follows:

S.1 Resident Economy is the sum of all the sectors of the domestic economy.

S.11 Non-Financial Corporations are corporate bodies producing goods and non-financial services on a commercial basis. They include public limited companies, private companies and other corporate forms of business, whether owned by residents (including the government) or non-residents or both. In particular, therefore, Irish subsidiaries of foreign companies and the Irish branches of foreign companies operating in Ireland on a branch basis are included; while the foreign subsidiaries of Irish companies and the foreign branches of Irish companies operating abroad are excluded (they form part of the Rest of the World sector S.2). Under the implementation of ESA2010, entities which operate as holding companies for non-financial corporations are now classified in the financial sector.

S.12 Financial Corporations are corporate bodies producing financial services on a commercial basis. As with S.11, they can take various legal forms, with a range of ownership arrangements. They include monetary financial institutions, other financial intermediaries, financial auxiliaries, insurance corporations and pension funds.

S.13 General Government consists of central and local government. Central government includes the Ireland Strategic Investment Fund (formerly the NPRF), and non-commercial agencies owned and funded by government, but does not include commercial state-owned companies (which are proper to S.11 or S.12 as appropriate).

S.1M: S.14 + S.15 Households and Non-Profit Institutions Serving Households. S.14 consists of persons in their capacity as holders of financial assets or as borrowers. The business assets and liabilities of unincorporated self-employed persons are also mainly reflected in this sector. S.15 consists of non-profit institutions such as charities and sports clubs, and non-commercial agencies not owned by the government.

S.2 Rest of the World. The figures represent the economy’s transactions with non-residents. The conceptual definition is the same as in the Balance of Payments (BOP) statistics. In particular, non-residents include foreign subsidiaries of Irish companies, the foreign branches of Irish companies that operate abroad on a branch basis, and the head offices of foreign companies that operate in Ireland on a branch basis.

S.1N Not Sectorised. In the non-financial accounts an additional residual sector is used to report taxes and subsidies on products (D.29) in the Generation of Income Account (Account 1.2) as it is not possible to allocate these amounts to Institutional Sectors. In addition, throughout these accounts S.1N is used to report the amounts that appear as the statistical discrepancy in the National Income and Expenditure GDP accounts, arising from the use of two independent estimates of GDP (from the Income and Expenditure approaches). In the Annual National Accounts NIE tables 3 and 5, the official estimate of GDP is reported as the average of the two measures, and the discrepancy is therefore displayed as half the difference between the two independent estimates (and thus with different signs in the two tables). The discrepancy is projected forward on a quarterly basis in line with the trends in the Expenditure components and is presented in Table 2 of the Quarterly National Accounts. In the Quarterly Sector Accounts it appears in Gross Domestic Product, the opening item in the Generation of Income Account and is then carried through successive accounts via the balancing item. In the final non-financial account, the full amount of the discrepancy then emerges as the unallocated net lending or borrowing in the economy.

Description of Detailed Non-Financial Accounts

Sector accounts present a coherent overview of all economic processes and the roles played by the various sectors. Each economic process is described in a separate account. The accounts describe successively: generation of income, primary and secondary income distribution, final consumption, redistribution by means of capital transfers, and capital formation. Note that the Production Account (1.1) from the Annual Accounts is not included in these quarterly accounts as the data is not available on a quarterly basis.  The accounts record economic transactions, distinguishing between uses and resources (e.g. the resources side of the transaction category Interest (D.41) records the amounts of interest receivable by the different sectors of the economy and the uses side shows interest payable) with a special item to balance the two sides of each account. By passing on the balancing item from one account to the next a connection is created between successive accounts.

The accounts are compiled for the total economy and include accounts for separate domestic sectors and the Rest of the World sector. In this way the sector accounts describe:

  • for each economic process the role of each sector, for instance General Government in income redistribution and Financial Corporations in financing.
  • for each sector all economic transactions and their relation with other domestic sectors and the Rest of the World.

The successive accounts are explained in more detail below. 

Current Accounts

1.1 Production Account

This account is not presented in the Quarterly Non-Financial Accounts as quarterly data is not available.

1.2 Generation of Income Account

This account displays the transactions through which Gross Domestic Product at market prices is distributed to labour (compensation of employees), capital (operating surplus) and government (the balance of taxes and subsidies on production). The balancing item for the Household and NPISH sector in this account is called mixed income, because apart from operating surplus it also contains compensation for work by self-employed persons and their family members. Gross Operating Surplus/Gross Mixed Income (B.2g/B.3g) is the balancing item for the entire account.

1.3 Allocation of Primary Income Account

This account records, as resources, the income from direct participation in the production process, as well as property income received in exchange for the use of land, financial resources and other intangible assets. In addition, this account records the taxes on production and imports received by the government. On the uses side, property income is recorded as well as the subsidies paid by the government.

On this account the interest paid and received are recorded excluding imputed bank services (financial intermediation services indirectly measured - FISIM). In the national accounts insurance technical reserves are seen as a liability of insurance enterprises and pension funds to policyholders. Therefore, the receipts from investing these reserves are recorded as payments from insurance enterprises and pension funds to households, under Other Investment Income (D.44). In this account, Rents (D.45) are rent on land and other natural resources. The balancing item of this account for each sector is Gross National Income (B.5g). The Primary Income for the total economy is the National Income.

1.4 Memorandum-Entrepreneurial Income Account

This account is not presented in the Quarterly series.

1.5 Secondary Distribution of Income Account

The Secondary Distribution of Income Account shows how primary income is redistributed by means of current taxes on income and wealth, social contributions (including contributions to pension schemes), social benefits (including pension benefits) and other current transfers. The balancing item of this account is Gross Disposable Income (B.6g). For the consuming sectors (Households, NPISH and General Government) this item is passed on to Use of Disposable Income Account (1.6). For the other sectors the disposable income is generally equal to saving. This is then passed on to the Change in Net Worth due to Saving and Capital Transfers Account (1.8).

1.6 Use of Disposable Income Account

This account shows the element of disposable income that is spent on final consumption and also the element that is saved. As mentioned above final consumption only exists for Households, NPISH and General Government. The net equity of Households in pension funds is seen as a financial asset that belongs to Households. Changes in these reserves need to be included in the saving of Households. However, contributions to pension schemes and pension benefits have already been recorded on the Secondary Distribution of Income Account (1.5) as social contributions and social benefits. Therefore, an adjustment is needed in the saving of Households to include the change in pension funds reserves on which they have a definite claim. This adjustment is called Adjustment for the Change in Pension Entitlements (D.8). There is no need for a similar adjustment concerning life insurance because life insurance premiums and benefits are not recorded as current transactions. The balancing item for this account is Gross Saving (B.8g).

1.7 External Account

This account records the summarised transactions of the Rest of the World Sector (S.2), including on the uses side exports of goods and services, primary incomes and current transfers receivable. The resources side of this account includes imports of goods and services together with primary incomes and transfers payable. The balancing item is Current External Balance (B.12), which records the balance on current accounts with the Rest of the World.

Capital Accounts

1.8 Change in Net Worth due to Saving and Capital Transfers

On this account the capital transfers are recorded and combined with gross saving and the current external balance. The resulting balancing item is Changes in Net Worth due to Saving and Capital Transfers (B.10.1).

1.9 Acquisition of Non-Financial Assets Account

On this account, Gross Fixed Capital Formation (P.51), Changes in Inventories (P.52) and Acquisitions less Disposals of Valuables and Non-Produced Non-Financial Assets (N.P.) are recorded among the uses. The decline in the value of fixed capital goods caused by consumption of fixed capital goods is recorded among the resources (P.51c). The balancing item is Net Lending(+) or Borrowing(-) (B.9). It shows the amount a sector can lend/invest or has to borrow as a result of its current and capital transactions.

Seasonal Adjustment

Seasonal adjustment is conducted using the direct seasonal adjustment approach. Under this approach, each individual time series is independently adjusted, i.e. aggregate series are adjusted without reference to the component series.

As part of the seasonal adjustment process, ARIMA models are identified for each series based on unadjusted data spanning Q1 1999 to Q1 2017. These models are then applied to the entire series. Seasonal factors and the parameters of the ARIMA models are updated each quarter.

The adjustments are completed by applying the X-13-ARIMA model, developed by the U.S. Census Bureau to the unadjusted data. This methodology estimates seasonal factors while also taking into consideration factors that impact on the quality of the seasonal adjustment such as, for example:

  • calendar effects, e.g. the timing of Easter
  • outliers, temporary changes and level shifts in the series

For additional information on the use of X-13-ARIMA, see https://www.census.gov/srd/www/x13as/.

Definition of Household Saving Ratio

The derived seasonally adjusted household saving ratio is seasonally adjusted gross household saving expressed as a percentage of adjusted total resources, i.e. the sum of gross household disposable income and the adjustment for the change in pension entitlements (B.8g+ D.8). Household saving used for this ratio is that part of disposable income that is not spent on final consumption of goods and services (P.3). The use of these saving either for financial investment or debt reduction is not recorded in these accounts but is recorded in the financial account (see Quarterly Financial Accounts http://www.centralbank.ie/polstats/stats/qfaccounts/Pages/releases.aspx published by the Central Bank of Ireland and http://www.cso.ie/en/releasesandpublications/ep/p-isanff/isanff2015/ for annual integrated financial and non financial accounts).

Consumption of Fixed Capital

Quarterly data from 2010 onwards is benchmarked to the annual CFC (calculated using the perpetual inventory method) using the underlying quarterly investment data. Estimates for the current year are generated by extending the series using the preliminary capital formation statistics.

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