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Regional Accounts

Methodology

Contents

This publication is already the ninth thematic publication based on regional accounts. It enables users of statistical data to work with macroeconomic indicators at regional levels. These statistical data are consistently based on rules and recommendations established for the EU member states, which implies that they are comparable –­ harmonized. The regional levels correspond to the administrative breakdown of the Czech Republic and the international Classification of Territorial Units for Statistics (NUTS1)1) . Statistical data about territory – the Czech Republic without Prague includes to publication because it is very important to monitoring of the Regional Policy aim. In comparison with the recommendation the Extra-regio territory has not yet been defined, especially due to low values of indicators reached there; moreover, there are certain methodological shortcomings encountered when relative indicators of the GDP-per-capita on Extra-regio.

Methodologically, the indicators ‘gross domestic product’ (GDP), ‘gross value added broken down by kind of activity’ (GVA) and ‘gross fixed capital formation’ (GFCF) corresponded to the European System of Accounts (ESA 95). Using the ESA 95 rules the Czech Republic compiles quarterly national accounts that record growth rates and flexibly calculate key macroeconomic indicators. On the other hand, annual national accounts find wider applications to record larger details as to the kind-of-activity and sector structures of data in particular. They are also employed as a basis for correcting the quarterly national accounts and deriving regional accounts – a regional parallel of national accounts. In accordance with ESA 1995 regulation regional accounts indicators GDP, GVA, GFCF, employees and employment are calculated by workplace method, it means that indicators by enterprises are allocated into regions according to location of their local units. Household Accounts indicators are then allocated according to place of residence of households. Where current regional structured data were impossible to obtain, the regional structure of the previous year was used (this approach is also commonly used abroad if data are not available in the current period).

Also this year’s publication brings certain improvements compared with the previous year. The most important of them is impact of revision in annual national accounts for the year 2004 (definitive) and 2005 (semidefinitive) from June 2007 and furthermore exceptional revision from October of the same year that was related to harmonization of highways fees and also to revision of data for small enterpreneurs which are not registered. The data for the year 2006 is based on preliminary annual national accounts version. Furthermore there was revision of data defining to labour market – total employment and employees according to ESA 1995 methodology. This revision takes into account especially the influence of differences in number of foreign employees on regional labour market. Newly in publication comparison of investment´s rate as a share of GFCF on GDP was added and further labour productivity as share of GDP on one person employed was added. New there is also indicator that characterizes the share of export related to GDP on given territory.

The industries (kinds of activity) are structured according to sections of CZ-NACE Rev. 1 (identical in terms of contents to the European standard NACE Rev. 1).

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1) In 2003 it took the form of Regulation (EC) No 1059/2003 of the European Parliament and of the Council and has been binding since.