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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, 12 April 2017, 11am

Quarterly Institutional Sector Accounts Non-Financial

Quarter 4 2016 and Year 2016 (Preliminary)

Gross Saving by Institutional Sector (€million)
 Non-Financial CorporationsFinancial CorporationsGeneral GovernmentHouseholds and NPISH
 (S.11)(S.12)(S.13)(S.14 & S.15)
201560,1997,9692,58010,497
201673,9822,6203,62211,724

Increased Household Saving in 2016

Gross Household Savings Ratio Seasonally adjusted Q1 2015 – Q4 2016

Preliminary estimates for 2016 indicate that gross saving (B.8g) in the household sector increased by €1,227m to €11,724m, as pay income grew more than expenditure. The gross saving ratio of households, which expresses saving as a percentage of total gross disposable income, increased from 10.7 per cent in 2015 to 11.5 per cent in 2016 (see Background Notes - definitions).

Gross saving for the economy as a whole was 13 per cent greater than in 2015, going from €81,399m to €92,109m. The net lending figure is down from €24,904m to €7,541m, as this net figure takes account of the large purchases of intellectual property from abroad by corporations in 2016.

Quarterly Household Saving Increased in the Fourth Quarter

On a seasonally adjusted basis, the quarterly gross saving of households (B.8g) increased by 11 per cent, from €3,159m in Q3 2016 to €3,509m in Q4. After these seasonal factors are accounted for, household expenditure (P.3) decreased by €91m to €22,539m over this same period. The quarterly gross saving ratio for households increased from 12.3 per cent in Q3 2016 to 13.5 per cent in Q4 2016.

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 at the same link. See Background Notes for definitions of the terms used. These estimates are preliminary and will be subject to revision.


Government (S.13)

The gross saving of Government was €3,622m in 2016, up from €2,580m the previous year. An increase of €1,337m in receipt of taxes on products (D.21, which includes VAT) and an increase of €1,221m in taxes on income and wealth (D.5, which includes income tax and corporation tax) were the main contributors to this improvement.

This increase in gross saving of €1,042m contributed to the net borrowing of the government (after capital investment is accounted for) falling from €4,702m in 2015 to €1,305m in 2016.

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

Net lending of non-financial corporations in 2016 was less than a quarter of its 2015 level (€4,198m down from €17,488m) as the upward trend in capital investment (P.5) continued.  Increased investment in Ireland by foreign multi-nationals, as well as increased profits of redomiciled PLCs and domestic corporations, helped to drive up gross operating surplus (B.2g) by €2,679m to €123,205m in this sector.

Financial corporations had gross saving of €2,620m in 2016, down from €7,969m in 2015, as the investment income flowing out of the sector (D.44, mainly flowing to foreign investors) increased from €30,317m to €34,886m.

Rest of the World Sector (S.2)

The net borrowing (B.9) by the rest of the world from Ireland amounted to €7,534m in 2016 compared with a net borrowing of €24,901m in 2015. This, again, reflects the large increase in service imports.

Gross Disposable IncomePersonal Consumption ExpenditureSaving
2015Q124.250739274555421.40096340012512.84977587443037
2015Q224.491642126342321.65312905020622.83851307613614
2015Q324.316522411399421.97777202315182.33875038824754
2015Q424.642920192790722.22044718822242.4224730045683
2016Q124.681909014530222.67615687660442.00575213792573
2016Q225.039217621454722.45729545014362.58192217131109
2016Q325.789212934319822.62991839675783.159294537562
2016Q426.048075572796822.5391657075833.50890986521381
Summary Table: Quarterly Accounts by Institutional Sector, Q1 2015 - Q4 2016€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 2015 61,5094,95539,9553,7955,9606,843
   Q2 2015 61,3764,06840,9413,6375,8586,872
   Q3 2015 64,0905,46542,3753,6975,6666,887
   Q4 2015 68,8404,51447,0184,2105,6047,495
   2015 255,81519,002170,29015,33923,08828,096
   Q1 2016 64,1155,53641,4743,7006,1647,241
   Q2 2016 60,6964,41740,1643,5256,0596,532
   Q3 2016 68,9285,67845,5913,9035,8617,894
   Q4 2016 72,0964,75049,4674,2585,7977,825
   2016 265,83520,380176,69615,38523,88129,492
           
(b)B.2g/B.3gGross Operating Surplus /Q1 2015 36,6833728,0901,8501,0535,652
 Mixed incomeQ2 2015 37,5473728,7131,9151,0535,828
   Q3 2015 38,9503929,7222,0191,0536,117
   Q4 2015 44,9154234,0002,4691,0537,351
   2015 158,095155120,5268,2544,21424,947
   Q1 2016 37,8713928,9211,9301,1085,874
   Q2 2016 35,0823726,9341,7151,1085,288
   Q3 2016 42,0484231,9422,2361,1086,720
   Q4 2016 46,7884435,4092,5721,1087,656
   2016 161,789161123,2058,4544,43225,538
         
(c)D.1_D.4Net Primary IncomeQ1 2015 10,1310-14,251-274,32120,088
   Q2 2015 13,8780-11,6788274,47620,254
   Q3 2015 11,3040-13,7851494,47820,462
   Q4 2015 10,4800-14,3734383,36921,046
   2015 45,7930-54,0881,38716,64481,850
   Q1 2016 15,0420-9,242-1,0994,37421,009
   Q2 2016 16,0340-9,863-5054,64421,758
   Q3 2016 13,7430-11,039-1,4264,64021,568
   Q4 2016 12,7630-12,490-9763,82622,404
   2016 57,5820-42,633-4,00717,48486,738
           
(d)B.5gGross National IncomeQ1 2015 46,8143713,8391,8245,37425,740
  = (b + c)Q2 2015 51,4253717,0352,7415,52926,082
   Q3 2015 50,2543915,9372,1685,53126,579
   Q4 2015 55,3954219,6272,9074,42228,397
   2015 203,88815566,4379,64120,857106,797
   Q1 2016 52,9143919,6798315,48226,883
   Q2 2016 51,1163717,0711,2105,75227,046
   Q3 2016 55,7914220,9038105,74828,288
   Q4 2016 59,5514422,9181,5964,93430,060
   2016 219,37216180,5714,44721,916112,277
           
(e)D.5_D.7Net Current TransfersQ1 2015 -8930-6214781,555-2,305
   Q2 2015 -7230-1,884933,190-2,122
   Q3 2015 -5020-1,1123242,758-2,471
   Q4 2015 -10090-2,621-646,321-4,645
   2015 -3,1270-6,23983113,824-11,543
   Q1 2016 -5840-6954542,258-2,600
   Q2 2016 -4750-2,129214,275-2,642
   Q3 2016 -8090-9343872,407-2,669
   Q4 2016 -7790-2,831-1297,052-4,872
   2016 -2,6470-6,58973315,993-12,783
           
(f)B.6gGross Disposable IncomeQ1 2015 45,9213713,2182,3026,93023,435
  = (d + e)Q2 2015 50,7013715,1512,8348,71923,960
   Q3 2015 49,7533914,8252,4928,28924,108
   Q4 2015 54,3864217,0062,84310,74423,752
   2015 200,76115560,19910,47134,68295,254
   Q1 2016 52,3303918,9841,2857,74024,283
   Q2 2016 50,6413714,9421,23110,02824,404
   Q3 2016 54,9824219,9691,1978,15525,619
   Q4 2016 58,7724420,0881,46711,98625,188
   2016 216,72516173,9825,18037,90899,493
           
(g)P.3 + D.8Use of Disposable IncomeQ1 2015 -28,97300-629-7,692-20,652
   Q2 2015 -28,85200-623-7,875-20,354
   Q3 2015 -29,72700-621-8,345-20,760
   Q4 2015 -31,80900-629-8,188-22,992
   2015 -119,36200-2,503-32,101-84,757
   Q1 2016 -30,82300-632-8,195-21,996
   Q2 2016 -30,16100-639-8,431-21,091
   Q3 2016 -31,02900-642-8,995-21,392
   Q4 2016 -32,60200-645-8,666-23,291
   2016 -124,61500-2,559-34,287-87,769
           
(h)B.8gGross SavingQ1 2015 16,9483713,2181,673-7632,783
  = (f + g)Q2 2015 21,8493715,1512,2118443,606
   Q3 2015 20,0263914,8251,871-563,348
   Q4 2015 22,5774217,0062,2142,555760
   2015 81,39915560,1997,9692,58010,497
   Q1 2016 21,5073918,984653-4552,287
   Q2 2016 20,4803714,9425921,5973,313
   Q3 2016 23,9534219,969554-8404,227
   Q4 2016 26,1704420,0888213,3201,897
   2016 92,10916173,9822,6203,62211,724
           
(i)Changes in Capital AccountsQ1 2015 2,634373,784-100-683-403
  Q2 2015 763371,260-159172-547
  Q3 2015 1,972392,541-17654-486
  Q4 2015 -306421,5511,932-3,197-633
  2015 5,0631559,1361,496-3,655-2,069
  Q1 2016 602391,575-87-262-664
  Q2 2016 -1,49837290-247-552-1,026
  Q3 2016 1,961422,616-138353-911
  Q4 2016 -22,79744-21,458-166-634-582
  2016 -21,732161-16,978-638-1,095-3,183
           
(j)P.51cConsumption of Fixed CapitalQ1 2015 15,358 12,9332519071,267
   Q2 2015 15,379 12,9522529071,268
   Q3 2015 15,400 12,9712529071,270
   Q4 2015 15,422 12,9902529071,272
   2015 61,558 51,8471,0073,6275,077
   Q1 2016 15,513 13,0262539581,276
   Q2 2016 15,578 13,0842549581,281
   Q3 2016 15,676 13,1722569581,290
   Q4 2016 16,069 13,5242639581,324
   2016 62,836052,8071,0263,8325,171
           
(k)B.9Net Lending (+) / Q1 2015-4,2224,224754,0681,321-2,3531,113
  Net Borrowing (-)Q2 2015-7,2317,233743,4581,8011081,791
  = (h + i) - jQ3 2015-6,5996,598784,3951,443-9091,591
   Q4 2015-6,8496,849835,5673,894-1,549-1,146
   2015-24,90124,90431017,4888,458-4,7023,350
   Q1 2016-6,5876,595787,532313-1,675348
   Q2 2016-3,4053,404742,14791871,005
   Q3 2016-10,23810,238849,413160-1,4452,026
Q4 201612,696-12,69687-14,8943921,729-9
2016-7,5347,5413224,198957-1,3053,370
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  72,0964,75049,4674,2585,7977,825
D.3Subsidies, Received1,850 1,850267340001,244
USES (PAID)        
D.1Compensation of Employees21,59613521,461 13,8871,6214,6891,264
D.2Taxes on Production and Imports, Paid5,697 5,6974,973511650149
B.2g/ B.3gGross Operating Surplus/ Gross Mixed Income  46,7884435,4092,5721,1087,656
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  46,7884435,4092,5721,1087,656
D.1Compensation of Employees21,59615221,444    21,444
D.2Taxes on Production and Imports, Received5,697785,619   5,619 
D.4Property Income53,15332,08921,064 4,90514,7152381,207
D.41Interest17,0535,23911,814 -18811,71634253
D.42Distributed Income of Corporations9,9605,6124,348 8002,750203595
D.43Reinvested Earnings on Direct Foreign Investment17,30713,0774,230 4,294-6400
D.44Property Income attributed to Insurance Policy Holders8,7828,162620 03120308
D.45Rents52 52 00151
USES (PAID)        
D.3Subsidies, Paid1,8501,270581   581 
D.4Property Income53,15318,36934,784 17,39615,6911,450247
D.41Interest17,05210,2776,775 1,5083,6211,450196
D.42Distributed Income of Corporations9,9603,5496,410 5,77163900
D.43Reinvested Earnings on Direct Foreign Investment17,3074,23013,077 10,1162,96100
D.44Property Income attributed to Insurance Policy Holders8,7823128,470 08,47000
D.45Rents52 52 10051
B.5gGross National Income  59,5514422,9181,5964,93430,060
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  59,5514422,9181,5964,93430,060
D.5Current Taxes on Income, Wealth, etc.10,6632010,643   10,643 
D.61Social Contributions4,73704,737 01,3903,3470
D.62Social Benefits other than Social Transfers in Kind6,902806,822    6,822
D.7Other Current Transfers5,5611,9663,595 1012,163731,258
USES (PAID)        
D.5Current Taxes on Income, Wealth, etc.10,6631910,644 2,69474807,201
D.61Net Social Contributions4,73704,737    4,737
D.62Social Benefits other than Social Transfers in Kind6,902796,824 07456,0790
D.7Other Current Transfers5,5611,1894,372 2372,1899321,014
B.6gGross Disposable Income  58,7724420,0881,46711,98625,188
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 Income  58,7724420,0881,46711,98625,188
D.8Adjustment for the Change in Pension Entitlements6450645    645
USES (PAID)        
P.3Final Consumption Expenditure  32,602   8,66623,936
D.8Adjustment for the Change in Pension Entitlements6450645  645  
B.8gGross Saving  26,1704420,0888213,3201,897
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 Services 84,134      
D.1 to D.8Primary Incomes and Current Transfers110,80634,38576,421     
USES (PAID)        
P.6Exports of Goods and Services 86,327      
B.11External Balance of Goods & Services -2,193      
D.1 to D.8Primary Incomes and Current Transfers110,80621,06089,745     
B.12Current External Balance 11,132      
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   26,1704420,0888213,3201,897
B.12Current External Balance 11,132      
D.9Capital Transfers8760876 2400326310
ASSETS        
D.9Capital Transfers8761875 590550265
P.51cConsumption of Fixed Capital   16,069 13,5242639581,324
B.10.1Changes in Net Worth due to Saving and Capital Transfers21,23311,13010,102446,7455592,138617
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 Transfers21,23311,13010,102446,7455592,138617
P.51cConsumption of Fixed Capital 16,069 16,069 13,5242639581,324
ASSETS        
P.5Gross Capital Formation37,301 37,301-4433,5974291,3681,951
NPAcquisitions less Disposals of Non-Produced Assets0-1,5661,566 1,566000
B.9Net Lending (+)/ Net Borrowing (-)012,696-12,69687-14,8943921,729-9

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). The business activities of self-employed persons (quasi-corporations) are in principle to be included here if separate accounts are available for statistical purposes. 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 and 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.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 non-commercial agencies not owned by the government, such as some schools and hospitals.

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). 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.5), Changes in Inventories and Acquisitions less Disposals of Valuables and Non-Produced Non-Financial Assets (NP) 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

Seasonally adjusted estimates of Household Saving are compiled using the indirect seasonal adjustment approach. Under this approach the two main aggregates, Household Disposable Income (B.6g + D.8) and Final Consumption Expenditure of Households (P.3), are independently adjusted. In the case of Household Saving (B.8g), however, this estimate is derived by taking the difference between the two adjusted series of Household Disposable Income and Final Expenditure of Households. This method for estimating the seasonally adjusted value for a small net residual of two large aggregates, such as Household Saving is considered to be a more appropriate estimation procedure.

Seasonal adjustment for all other variables 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 Q2 2016. These models are then applied to the entire series (Q1 1999 to Q4 2016). 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 Household Saving Ratio is Gross Household Saving (B.8g) expressed as a percentage of total resources, i.e. the sum of Gross Household Disposable Income (B.6g) and the Adjustment for the Change in Pension Entitlements (D.8). Household Saving in the relevant quarter represents that part of Disposable Income that is not spent on Final Consumption of Goods and Services (P.3).  The use of these savings 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).

Compensation of Employees

The Central Statistics Office (CSO) has re-examined the methodology used to calculate the compensation of employees (COE) results in the annual national accounts. Previously the main sources were the structural business censuses of industrial production and services. Now the administrative P35 data collected by the Revenue Commissioners (the State Tax collection authority) is used as the primary source of data. The method has changed for 2011 and years since. The P35 datasets give a more census-level coverage of the labour market in Ireland and contain information (at a person-job level) on pay for tax and for Social Insurance purposes and the amount of mandatory Employer’s Contribution to Social Insurance. They contain details of commencements/cessations of employment, employee personal public service (PPS) numbers, employer registration numbers (with links to employer information – e.g. NACE coding, institutional sector) and details of tax paid.  Other labour costs such as non-pension contributions of employers and benefits-in-kind are based on the results in the CSO’s Earnings, Hours and Employment Costs Survey (EHECS) at the detail level (A88).  In the case of pensions, data from the Irish Pensions Authority (IPA) is used directly in the estimate as it is deemed more accurate.

Consumption of Fixed Capital

The previous estimation of quarterly consumption of fixed capital (P.51c) has been revised. Work on improving this data has taken place since the release of the Q1 2016 data. Preliminary results of this exercise are now included with the latest release of data (i.e. Q4 2016 release). Quarterly data from 2010 onwards is benchmarked to the annual CFC (calculated using the perpetual inventory method) using the underlying quarterly investment data. Forecasts for the current year are generated by extending the series using the preliminary capital formation statistics. It must be understood that this exercise is still in the preliminary stages and may be subject to further refinement.

 

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