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For more information on this release:
E-mail: Michael Connolly (+353) 1 498 4006 Mary Brew (+353) 1 498 4365 Peter Culhane (+353) 1 498 4382
For general information on CSO statistics: (+353) 21 453 5000 On-line ISSN 2009-5600
CSO statistical release, , 11am

Quarterly Institutional Sector Accounts Non-Financial

Quarter 3 2016

 Seasonally Adjusted Gross Household Saving by Component
 Gross Disposable IncomeFinal Consumption ExpenditureGross Saving
Q2 201624,93922,3912,548
Q3 201625,65722,6303,027

Household Saving Ratio increased in Q3 2016

Gross Household Savings Ratio Seasonally adjusted Q1 2015 – Q3 2016
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The quarterly gross disposable income of households (B.6g) increased by €718m to €25,657m in the third quarter of 2016 (see table above).  Household expenditure (P.3) increased by €239m to €22,630m over this same period. Gross household saving (B.8g), therefore, increased by €479m in the quarter.

The derived gross saving ratio, which expresses saving as a percentage of gross disposable income, increased from 10.2 per cent in the second quarter of 2016 to 11.8 per cent in the current quarter (see Background Notes).

Increased Saving for the Overall Economy in Q3 2016

Gross saving for the total economy (S.1) increased by €3,925m, when compared to the same quarter last year, from €20,026m in Q3 2015 to €23,951m in Q3 2016 (see Summary Table). The main contributor to this increase was the non-financial corporation sector, with an increase of €5,002m to their gross saving. Household saving also saw an increase of €778m over this period. However, the saving of Government and financial corporations decreased between Q3 2015 and Q3 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 on our StatBank Database: Click here. 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.


Increase in Net Borrowing of Government (S.13)

Gross dissaving of Government was €636m in the third quarter of 2016, a decline of €580m on the Q3 2015 deficit of €56m. An increase of €451m in consumption expenditure (P.3) and an increase in current transfers paid (D.7) of €280m contributed to the increase in gross dissaving of Government.

On the capital side of the accounts an increase in gross capital formation (P.5) of €526m taken together with the reduction in saving of €580m contributed to the increase in the net borrowing (B.9) of Government of €884m, from €909m in Q3 2015 to €1,793m in Q3 2016.

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

The gross saving of non-financial corporations was €19,827m in Q3 2016 – an increase of 34 per cent (€5,002m more than the Q3 2015 figure of €14,825m) and an all-time high. There were two main drivers behind this change. Total profits (gross operating surplus, B.2g) increased by 7 per cent (from €29,722m to €31,798m). More of these profits were made by domestic corporations and redomiciled PLCs, with the result that the total earnings paid out to foreign multi-nationals (D.43 and part of D.42) decreased: reinvested earnings on direct foreign investment (D.43) were down by 38 per cent (from €8,947m to €5,506m).

Financial corporations had gross saving of €592m in Q3 2016, just a third of the value this time last year (€1,871m). This change was driven by net property income declining. Dividends paid (D.42) went from €189m to €770m and the re-invested earnings of foreign multi-nationals (D.43) went from €2,057 to €2,631m. Other investment income (D.44, which includes income of investment funds) paid to the rest of the world by financial corporations (S.12) also increased significantly from €7,982m to €8,801m.

Rest of the World Sector (S.2)

The net borrowing (B.9) by the rest of the world from Ireland amounted to €9,684m in Q3 2016 compared with a net borrowing of €6,599m in Q3 2015. This represents the net resources that the Irish economy makes available to the rest of the world. The increase of €3,085m in net borrowing by the rest of the world reflects the increase in the level of gross saving in the Irish economy which amounted to €3,925m over this same period.


Gross Disposable IncomePCESaving
Table 1: Quarterly Accounts by Institutional Sector, Q1 2015 - Q3 2016 Summary  €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 including 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 64,0305,53841,4323,6946,1457,221
   Q2 2016 60,4894,41940,0343,5096,0406,488
   Q3 2016 68,7135,67245,4573,8885,8447,851
(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 37,7833928,8561,9231,1105,855
   Q2 2016 34,8723726,7821,6991,1105,244
   Q3 2016 41,8494231,7982,2211,1106,679
(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 15,0390-9,242-1,0994,37121,009
   Q2 2016 16,0370-9,863-5054,64721,758
   Q3 2016 13,7260-11,035-1,3734,57821,556
(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 52,8223919,6148245,48126,864
   Q2 2016 50,9093716,9191,1945,75727,002
   Q3 2016 55,5754220,7638485,68828,235
(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 -5840-6954542,299-2,641
   Q2 2016 -4750-2,129214,311-2,678
   Q3 2016 -8090-9353872,472-2,732
(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 52,2383918,9191,2787,78024,223
   Q2 2016 50,4353714,7911,21510,06824,324
   Q3 2016 54,7664219,8271,2348,16025,503
(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 -30,72100-632-8,067-22,021
   Q2 2016 -29,95700-639-8,294-21,023
   Q3 2016 -30,81500-642-8,796-21,377
(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 21,5183918,919646-2882,202
   Q2 2016 20,4783714,7915761,7743,301
   Q3 2016 23,9514219,827592-6364,126
(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 584391,433-87-112-688
  Q2 2016 -1,49637409-247-702-992
  Q3 2016 1,408422,681-140-199-975
(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
(k)B.9Net lending (+) / Net borrowing (-)Q1 2015-4,2224,224754,0681,321-2,3531,113
  = (h + i) - jQ2 2015-7,2317,233743,4581,8011081,791
   Q3 2015-6,5996,598784,3951,443-9091,591
   Q4 2015-6,8496,849835,5673,894-1,549-1,146
   Q1 2016-6,5876,588787,325306-1,358238
   Q2 2016-3,4053,404732,115751141,027
   Q3 2016-9,6849,683839,336196-1,7931,860
Quarterly Accounts by Institutional Sector, Q3 2016€million
S.14+S.15 Households including NPISHS.13 General governmentS.12 Financial CorporationsS.11 Non-Financial CorporationsS.1N Not SectorizedS.1 Total EconomyS.2 Rest of WorldS.1+S.2 Sum Over SectorsS.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorizedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General governmentS.14+S.15 Households including NPISH
        B.1*gGross Domestic Product  68,7135,67245,4573,8885,8447,851
1,2474,7341,57913,275 20,83513620,970D.1Compensation of Employees        
1030895165,8476,554 6,554D.2Taxes on Production and Imports, paid        
        D.3Subsidies, received524 52421613100177
6,6791,1102,22131,7984241,849  B.2g/ B.3gGross Operating Surplus/ Mixed Income        
        B.2g/ B.3gGross Operating Surplus/ Mixed Income  41,8494231,7982,2211,1106,679
        D.1Compensation of Employees20,97015620,815    20,815
        D.2Taxes on Production and Imports, received6,554936,461   6,461 
 397   397127524D.3Subsidies, paid        
2951,54415,42512,971 30,23514,65644,891D.4Property Income44,89027,80717,083 1,93614,051581,037
2441,5443,2231,547 6,5579,13915,696D.41 Interest15,6954,94710,748 -20210,66334252
007705,917 6,6872,7909,477D.42 Distributed Income of Corporations9,4776,2853,192 962,70223371
002,6315,506 8,1372,31710,454D.43 Reinvested earnings on direct foreign investment10,4548,1372,317 2,04127500
008,8010 8,8014119,212D.44 Other investment income9,2128,438774 04110363
51001 52 52D.45 Rent52 52 00151
28,2355,68884820,7634255,575  B.5gGross National Income        
Quarterly Accounts by Institutional Sector, Q3 2016€million
S.14+S.15 Households including NPISHS.13 General governmentS.12 Financial CorporationsS.11 Non-Financial CorporationsS.1N Not SectorizedS.1 Total EconomyS.2 Rest of WorldS.1+S.2 Sum Over SectorsS.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorizedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General governmentS.14+S.15 Households including NPISH
        B.5gGross National Income  55,5754220,7638485,68828,235
4,5150230800 5,545195,564D.5Current Taxes on Income, Wealth, etc.5,564205,545   5,545 
4,250    4,25004,250D.61 Social contributions4,25004,250 01,3872,8630
05,4727450 6,216806,296D.62 Social benefits other than social transfers in kind6,296826,214    6,214
1,3075191,999235 4,0608694,929D.7Other Current Transfers4,9291,6753,254 1011,974551,125
25,5038,1601,23419,8274254,766  B.6gGross Disposable Income        
        B.6gGross Disposable Income  54,7664219,8271,2348,16025,503
22,0198,796   30,815  P.3Final Consumption Expenditure        
  642  6420642D.8Adjustment for the Change in Pension Entitlements6420642    642
4,126-63659219,8274223,951  B.8gGross Saving        
 79,585 P.6Exports of Goods and Services        
        P.7Imports of Goods and Services 55,563      
      -24,022 B.11External Balance of Goods and Services        
     78,73415,88794,621D.1 to D.8Primary Incomes and Current Transfers94,62029,83264,788     
      -10,076 B.12Current External Balance        
Quarterly Accounts by Institutional Sector, Q3 2016€million
S.14+S.15 Households including NPISHS.13 General governmentS.12 Financial CorporationsS.11 Non-Financial CorporationsS.1N Not SectorizedS.1 Total EconomyS.2 Rest of WorldS.1+S.2 Sum Over SectorsS.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorizedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General governmentS.14+S.15 Households including NPISH
B.8gGross Saving  23,9514219,827592-6364,126
        B.12Current External Balance -10,076      
70225029 32572396D.9Capital Transfers3960396 900171135
1,29095825613,172 15,676  P.51CConsumption of Fixed Capital        
2,900-1,6483366,716428,346-10,148-1,802B.10.1Changes in Net Worth due to Saving and Capital Transfers        
        B.10.1Changes in Net Worth due to Saving and Capital Transfers-1,802-10,1488,346426,716336-1,6482,900
2,3301,10339610,088-4213,876 13,876P.5Gross Capital Formation        
        P.51CConsumption of Fixed Capital15,676 15,676 13,1722569581,290
000464 464-4640NPAcquisitions less Disposals of Non-Produced Assets        
1,860-1,7931969,336839,683-9,684-1B.9Net Lending (+) / Net Borrowing (-)        

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 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 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 Q3 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

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 published by the Central Bank of Ireland and 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 years where the method has changed are 2011 – 2015. 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 transmission of the Q1 2016 data. Preliminary results of this exercise are now included with the latest transmission of data (i.e. Q3 2016 transmission). 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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