Regional Seminar on Developing a Programme for the

Regional Seminar on Developing a Programme for the Implementation of 2008 SNA & Supporting Statistics 30 January – February 1, 2013 Kingston, Jamaica The Statistical Institute of Jamaica

Exhaustive Coverage of GDP Coverage of all economic activities is an important quality consideration for national accounts Exhaustive coverage is often difficult to achieve due to data collection issues or the activity is deliberately concealed Under coverage can affect both level and trend of the GDP

Exhaustive Coverage of GDP Non-Observed Economy- that part of the economy that is difficult to measure. Includes: ◦ informal sector production ◦ production of households for own final use ◦ underground production ◦ illegal production

Exhaustive Coverage of GDP There are two approaches to measuring the nonobserved 1. Focus is on ensuring that all activities including non-observed activities is a part of the GDP 2. Focus is to study the informal sector, estimating the size, examine the characteristics of the sector

Exhaustive Coverage of GDP The emphasis in the Jamaican national accounts is to ensure the exhaustiveness of the GDP Does not estimate formal and informal activities separately. Recognition that these units are not captured through the basic data gathering mechanisms Alternate methods have to be developed to estimate value added of these activities

Exhaustive Coverage of GDP Supply based methods – data on the supply of inputs such as labour are used to estimate output Demand based methods – production is determined by using indicator data on specific uses of a good or service Commodity flow method – this method involves balancing total supplies and uses of individual products.

Exhaustive Coverage of GDP Restaurants and Eating Establishments HES –household consumption of meals away from home Issues for consideration ◦ Includes restaurants, hotels, baking industry, retail ◦ Purchasers values

Exhaustive Coverage of GDP Tourism Expenditure consumption of food outside hotels- purchasers prices Business consumption in restaurants – SUT The output of “formal” segment is estimated using supply side data. Intermediate consumption is estimated using surveys The informal portion is therefore a residual of total output less the formal segment

Exhaustive Coverage of GDP Costs for the informal portion is usually estimated from anecdotal information gathered from some players in the industry Extrapolation GCT returns Survey of Living Conditions Tourism expenditure on food outside hotels

Exhaustive Coverage of GDP STATIN however recognises the importance of an analytical study of the informal sector There is a plan for a study using the mixed survey methodology as recommended by the ILO Resource constraints

Exhaustive Coverage of GDP Mixed Survey have two phases Phase 1: Identify informal production units or Household Unincorporated Enterprises with at least some market production (HUEMS) The Labour Force Survey to be used Phase 2: To gather information about the working conditions and economic performance of the informal production units

The End Thank you