Annual National Accounts

1.1 This publication presents a definitive set of annual national accounts for 1999 and a semi-definitive set for 2000. For better illustration it also shows data selected macroeconomic aggregates in a time series starting in 1996. All of the data are current price data only and are also available on floppy disk, CD-ROM and CZSO web site in addition to this printed form of theirs.

Contents of the publication

1.2 The publication consists of seven parts – main economic aggregates, integrated economic accounts, institutional sectors accounts, production account, generation of income account, non-financial assets balances, time series of institutional sectors accounts, and supply and use tables.
1.3 Tables M (macroeconomic tables) provide an overview, in the form of time series, of the main macroeconomic aggregates for total economy and non-residents. They are an extract of the most significant items of accounts of institutional sectors and industries. They also give a framework overview of sector, kind-of-activity and type-of-goods structure of these aggregates. Brought out among the macroeconomic tables for the first time are a time series on the sector – kind of activity structure of GDP broken down into subsectors grouped by “ownership form” (M 3b) and a time series on the type-of-goods structure of gross fixed capital formation (M 5b)
1.4 Tables A 1 to A 12 (integrated economic accounts) give an overview of all accounts Except for the revaluation account, which is not split into neutral holding gains/losses account and real holding gains/losses account. (current and accumulation accounts and balance sheets) for national economy in total, all institutional sectors and non-residents. They balance all flows and all assets and liabilities, showing also macroeconomic aggregates in total and by sector directly.
1.5 Tables A 16 to A 60 (sub-sector accounts) give a full sequence of accounts1 for institutional sectors broken down into subsectors by the Czech practice, i.e. into sectors of non-financial corporations, financial institutions and general government. The structure of this presentation is the same as the one of integrated economic accounts.
1.6 Tables B 1 to B 11 show the kind-of-activity structure of all items in production and generation of income accounts for total national economy or given sectors/subsectors, while Tables B 12 to B 16 reveal a combined (sub)sector – kind-of-activity structure of the individual items of the two accounts.
1.7 Tables BF, BN and BZ show the kind-of-activity structure of the stocks and changes in the stocks of non-financial assets in the form of integrated balances or a more detailed breakdown of some acquisition of non-financial assets account items.
1.8 Tables TS (time series of institutional sectors accounts) provide data of all institutional sectors accounts in a five-year time series for 1996 to 2000 at current prices for total economy, individual sectors and non-residents.
1.9 Tables DU (supply and use tables) include a type-of-goods and kind-of-activity structure of sources of goods and services and uses of the sources. They give a detailed view of the process of production and transactions in commodities within the whole economy They especially show flows of goods and services produced in the national economy and imported, commodity structure of inputs to and outputs from different kinds of activities, and the commodity structure of individual final use components.
1.10 For publishing purposes, all of the data listed in the supply and use tables and broken down by kind of activity and commodity were aggregated. They are available to the user in the book form and on floppy disk, the latter also containing supply and use tables broken down by two-digit CZ-NACE and CZ-CPA in addition to the contents of the book form.

Brief comments on the compilation of national accounts

Semi-definitive compilation for 2000

1.11 The Czech national accounts are compiled according to the international standard “European System of National Accounts (ESA 1995)”. In harmony with this methodology and with reference to complementary regulations of EU authorities, own standard procedure and methods have been developed. They include procedures for taking-over data from statistical surveys and administrative sources, for adjustments of the data to comply with methodology of national accounts, and for estimation made to cover the whole economy. The results of the procedures are documented in the following two tables, in which GDP for 2000 is calculated by means of production and expenditure approaches.
Table 1: GDP by production approach, 2000

Item	Surveyed	Adjustment and undercoverage	TOTAL CZK million
	CZK million	% of item	% of GDPCZK million% of item% of GDP
Output	4 753 785	92,7	x374 4827,3x5 128 267
Intermediate consumption	3 149 018	93,8	x208 8056,2x3 357 823
Gross value added	1 604 767	90,6	80,9165 6779,48,31 770 444
Taxed on products	239 896	100,0	12,1---239 896
Subsidies on products	-25 507	100,0	-1,3----25 507
Gross domestic product	1 819 156	91,7	x165 6778,3x1 984 833

1.12 The most important adjustments made to ensure that the contents of GDP and the balancing items of national accounts are covered correctly in terms of methodology include the following: holding gain/loss estimation; estimation of the level and allocation of financial lease payments; estimation of fixed capital consumption for units not accounting fixed capital consumption; estimation of the extent and allocation of work done under inward/outward processing procedures; recording of accrual-based data (especially taxes and social security contributions); estimation of agricultural self-supplies, including forest fruit collection; estimation of individual housing construction and modernization of dwellings; estimation of imputed rent of owner-occupiers, including replacement cost of housing stock; estimation of fixed capital consumption for municipal and cooperative dwellings and recording of the influence of privatization of municipal and cooperative dwellings on the value added calculation method; estimation of the output for own final use (exclusion of material and goods capitalization); estimation of the output of forestry, including forest increments; estimation of gross fixed capital formation, including sub-limit fixed assets; and estimation of the output of insurance companies.
1.13 The most important adjustments, which ensure the full coverage of the whole economy, are the following: estimations for units free of the duty to get registered; estimation of willful distortion of reported data; estimations for informal sector, estimations for some illegal activities (prostitution, sale of stolen cars).
Table 2: GDP by expenditure approach, 2000

Item	Surveyed	Adjustment and undercoverage	TOTAL CZK million
	CZK million	% of item	% of GDPCZK million% of item% of GDP
Household consumption expenditure	955 889	90,2	48,2103 6759,85,21 059 564
Government consumption expenditure	351 413	90,5	17,736 8949,51,9388 307
NPISH consumption expenditure	13 682	94,1	0,78585,9 0,014 540
Gross fixed capital formation	510 818	91,0	25,750 7019,02,6561 519
Changes in inventories	61 189	x	3,1-34 511x-1,726 678
of which: Materials and supplies	16 206	x	0,8-8 734x-0,47 472
Work in progress	7 869	x	0,4-1 366x-0,16 503
Finished goods	4 045	x	0,2-2 879x-0,11 166
Goods for resale	33 069	x	1,7-21 532x-1,111 537
Acquisitions less disposals of valuables	907	x	0,0-417x0,0490
Exports of goods and services	1 381 534	99,7	69,64 3710,30,21 385 905
Imports of goods and services (-)	-1 451 300	99,9	-73,1-8700,1 0,0-1 452 170
Gross domestic product	1 824 132	91,9	x160 7018,1x1 984 833

1.14 Relatively most significant adjustments were made to the item ‘changes in inventories’ due to methodological adjustments necessitated by differences between principles of enterprise and national accounting systems and to estimates made to cover the national economy fully: inclusion of holding gain/loss (CZK – 27.0 billion), of inventories concerning the inward processing procedure (CZK + 5.8 billion), of forest increment estimate (CZK + 3.7 billion) and of part of the difference between the previous year’s opening and closing inventories (CZK – 17.0 billion).
Table 3: GDP by income approach, 2000

Item	Surveyed	Adjustment and undercoverage	TOTAL CZK million
	CZK million	% of item	% of GDPCZK million% of item% of GDP
Wages and salaries	664 413	95,4	33,531 6964,61,6696 109
Employers´ social contributions	216 911	96,2	10,98 5813,80,4225 492
Taxes on products, net	214 389	100,0	10,8 214 389
Other taxes on production, net	-21 608	114,4	-1,12 721-14,40,1-18 887
Gross operating surplus and mixed income	745 051	85,9	37,5122 67914,16,2867 730
Gross domestic product	1 819 156	91,7	91,7165 6778,38,31 984 833

1.15 A similar description of the individual data sources and methods applied to estimates of GDP and GNP is given in a study for 1998 “Sources, Methods, and Calculations of Gross Domestic Product 1998”; CZSO, code 5009-01.. However, the consistent application of the ESA 1995 methodological principles required that some practical procedures should be more specific. They are shown in the publication of the definitive compilation of annual national accounts for 1998 “Annual National Accounts 1998 (definitive compilation”); CZSO, code 5004-01., and along with tree supplementing adjustments:
― updating the estimate and way of recording of compensation of employees. Net wages of non-residents working in the Czech Republic and Czech residents working abroad were supplemented by social contributions, income taxes and private consumption (made in cooperation with Czech National Bank);
― including part of the difference between the opening inventories of the reference year and the closing inventories of the previous year (especially for enterprises under liquidation) into change in inventories. By 1998, the whole difference was recorded as statistical discrepancy on the other changes in volume of assets account);
― updating the methodology for the estimate of accrual-based taxes (time shift method), using data from the Ministry of Finance of the CR.
1.16 For comparability of the time series for 1998 to 2000, the methodologically updated way of recording the work of non-residents and the discrepancy in the stocks of inventories were reflected in the already published definitive compilation of national accounts for 1998 and, of course, in the definitive compilation of national accounts for 1999. The adjustments have not yet been reflected in the time series of indicators for 1990 to 1997.
1.17 When balancing the commodity glows in the supply and use tables, we partially re-assessed the commodity structure of expenditure on final consumption of households. Similarly, we adjusted the structure in the time series 1996 to 2000, too.

Adjustments to compilations for 1998 and 1999

1.18 The overall impact of changes in goods and services account items between the definitive and semi-definitive compilations of national accounts for 1998 is shown in the following three tables.
Table 4: GDP by production approach, 1998 and 1999

Item	1999	1998
	Semi definitive compilation	ChangeDefinitive compilationDefinitive compilationChangeCorrects definitive compilation
		CZK million% of item% of GDPCZK million% of item% of GDP
Output	4 617 910	15 4840,3x4 633 3944 589 755--x4 589 755
Intermediate consumption	2 939 044	-1 916-0,1x2 937 1282 940 558--x2 940 558
Gross value added	1 678 866	17 4001,00,91 696 2661 649 197---1 649 197
Taxed on products	232 873	-2 432-1,0-0,1230 441211 0887900,4 0,0211 878
Subsidies on products	-24 414	----24 414-21 987----21 987
Gross domestic product	1 887 325	14 9680,8x1 902 2931 838 298790 0,0x1 839 088

1.19 The methodological adjustments influenced the volume and structure of most other balancing items of national accounts, such as gross national income, gross saving or net lending/borrowing.
Table 5:

GDP by expenditure approach, 1998 and 1999

	1999	1998
Item	Semi definitive compilation	ChangeDefinitive compilationDefinitive compilationChangeCorrect definitive compilation
		CZK million% of item% of GDPCZK million% of item% of GDP
Household consumption expenditure	1 005 895	7420,1 0,01 006 637950 1801 7750,20,1951 955
Government consumption expenditure	371 929	1 3850,40,1373 314342 449---342 449
NPISH consumption expenditure	11 470	1 0899,50,112 55914 158---14 158
Gross fixed capital formation	527 082	1 1910,20,1528 273535 619-1600,00,0535 459
Changes in inventories	-1 870	7 179-383,90,45 30921 395-4 902-22,9-0,316 493
Acquisitions less disposals of valuables	531	---531642---642
Exports of goods and services	1 148 465	4 1420,40,21 152 6071 076 0284 9020,50,31 080 930
Imports of goods and services (-)	-1 176 177	-7600,1 0,0-1 176 937-1 102 173-8250,1 0,0-1 102 998
Gross domestic product	1 887 325	14 9680,8x1 902 2931 838 298790 0,0x1 839 088

Supply and use tables for 1999

1.20 In principle, supply and use tables constitute a commodity breakdown of production account and goods and services account. They are compiled to comply with the three-digit CZ-CPA (goods) and three-digit CZ-NACE (economic activity). The tables published in the book form use CZ-CPA divisions and CZ-NACE divisions, or aggregations thereof, for breakdown, while those released in the electronic form are free of the aggregations.
1.21 The supply table DU 1 records the output of individual industries (CZ-NACE economic activities) by commodity division (CZ-CPA). Provided in the table are also an import vector and total resources of individual commodity divisions (in the total column). The table is compiled at basic prices, i.e. free of taxes and subsidies on products, and trade and transport margins. The total line corresponds to the output data recorded for the whole economy in production account.
1.22 The supply and use table DU 2 shows uses of goods and services by commodity and type of use – i.e. as intermediate consumption (in individual economic activities) and as final use components (final consumption expenditure by households, general government and non-profit institutions; gross fixed capital formation; change in inventories; and exports). The use covers both domestic and imported outputs. The table lines record the structure (way) of the use of a given commodity division, the columns show the commodity structure of intermediate consumption in economic activities (industries). All the use items are in terms of purchaser prices – i.e. prices paid by the consumer. The total line of the intermediate consumption matrix corresponds to the intermediate consumption data recorded for the whole economy in production account. The total columns of final use correspond to the individual items of goods and services account. The table also presents data on gross value added by economic activity. The components of gross value added correspond to data for the whole economy on generation of income account. For the sake of clarity, the use valued at purchaser prices and presented in this table is supplemented with total columns of the supply table (output at basic prices and exports). Identical valuation of supply table resources (at basic prices) and the use (at purchaser prices) is achieved with the help of the columns listing wholesale, retail and transport margins and the columns including taxes and subsidies on products.
1.23 The use of exports table DU 3 records all uses of imported output, namely for intermediate consumption and final use components valued at c.i.f. prices.
1.24 The use table DU 4 includes the use of goods and services valued at basic prices. Subtracted from the purchaser price use tables (see DU 2) are only matrices of trade and transport margins and of taxes and subsidies on products. The summary vectors are then added to the line of trade and transport services concerned. Total lines for matrices of taxes and subsidies on products are shown separately.