Revision to balance of payments data for 2005 and 2010
The CNB is publishing revised national balance of payments data for 2005–2010. The revision contains an adjustment of the goods and services balance for margin payments due to non-residents (“ branding”) and updates of the balance of services, balance of transfers and income balance items on the current account. The publication of revised national balance of payments time series since 2005 in September 2011 was announced in a CNB press release of 10 March 2011.
As a result of the data revision, the ratio of the current account deficit to GDP will increase by around 1.2 percentage points to approximately 4.4% for 2007 and by around 1.6 percentage points to approximately 2.2% for 2008. By contrast, the said ratio will decrease in the remaining years. The main changes in the current account are listed in the table below.
Summary of the revision to the current account data in 2005–2010 (in CZK billions):
| Current account |
Original amount |
New amount |
Difference (between new and original amount) |
- of which difference for goods and services |
|---|---|---|---|---|
| 2005 | -39.8 | -30.9 | +8.9 | -9.8 |
| 2006 | -77.2 | -67.1 | +10.1 | -1.9 |
| 2007 | -113.1 | -156.9 | -43.8 | -64.2 |
| 2008 | -22.9 | -81.3 | -58.4 | -69 |
| 2009* | -114.8 | -89.3 | +25.5 | +14.9 |
| 2010* | -139.2 | -116.4 | +22.8 | +9.1 |
Note: *Adjusted foreign trade data for 2009 and 2010 were published by the CZSO in March 2011
On 6 September 2011, the CZSO published adjusted data on cross-border movements of goods adjusted for branding in the time series starting with the Czech Republic’s accession to the European Union. Based on the CZSO’s statistical surveys, the balance of payments was also revised to reflect changes in the calculation of direct trade costs abroad, the recalculation of data for unreturned statements and below-the-threshold services, and imputed items related to the employment of foreign workers in the Czech Republic and Czech nationals abroad. The presented data are based on an extraordinary revision to the national accounts related to the implementation of NACE2 in all EU countries and will be incorporated into the annual national accounts, which the CZSO will publish at the end of September 2011 (see the CZSO press release).
The time series of derivatives transactions on the financial account has been revised using the methodology and results of a new statement on the settlement of derivatives transactions introduced for banks in January 2011.
Cross-border financial derivatives flows revision 2005-2010
(in CZK billions)
The timing of the drawing and repayment of loans in the government and corporate sectors was revised by incorporating additionally reported transactions into other investment, although this had a minimal impact on the financial account balances. The main changes in the financial account are listed in the table below.
Summary of the revision to the financial account data in 2005–2010 (in CZK billions):
| Financial account |
Original amount |
New amount |
Difference (between new and original amount) |
- of which difference for other investment |
|---|---|---|---|---|
| 2005 | 154.8 | 160.0 | +5.2 | +2.2 |
| 2006 | 92.4 | 99.8 | +7.4 | +0.5 |
| 2007 | 125.8 | 125.3 | -0.5 | -0.5 |
| 2008 | 59.0 | 92.2 | +33.2 | +19.4 |
| 2009 | 154.2 | 143.2 | -11.0 | -19.1 |
| 2010 | 182.1 | 183.3 | +1.2 | 0 |
The revisions to the balance of payments data affected the errors and omissions item, with the previously constantly negative values of the said item becoming distributed more evenly around zero in the time series. Errors and omissions are again strongly negative over the last two years, although – in contrast to the situation before the data revision – this is linked more with the reporting of financial account transactions (among other things, the conversion of yields on eurobond issues abroad into koruna) than with the current account data. The processing of CNB’s regular annual statements for foreign-owned companies for 2010, scheduled for publication in April 2012, will affect the final financial account flow results and may therefore correct the errors and omission item.
Change in errors and omissions due to data revisions in 2005-2010
(CZK billions)
A further extraordinary revision to the national accounts and balance of payments will be made in 2014 in connection with the introduction of ESA 2010 and the presentation of external economic relations data in accordance with the new BPM6 balance of payments manual.