Integrated Economic Statistics Statistics Canada’s Experience

1. Integrated Economic StatisticsStatistics Canada’s Experience Catherine Van Rompaey September 2013

2. Overview • Integration in the Canadian SNA • Current program and its recent evolution • Recent and upcoming comprehensive revisions • Statistics Canada’s business register • Integrated Business Statistics Program (IBSP) • Issues and challenges for the Canadian macroeconomic accounts

3. Core macroeconomic accounts Annual (regional) • Provincial input-output accounts (supply-use) • Provincial economic accounts • Provincial GDP by industry • Quarterly • National GDP income and expenditure based • Institutional sector accounts including financial account and balance sheet • Balance of payments • Monthly • GDP by industry in real terms

4. Provincial Input-Output Accounts

5. Other programs and extensions • Labour and multifactor productivity • Environmental accounts • Flow accounts, natural resource stocks • Satellite accounts • Tourism, Non profit sector, R&D, Culture • Special studies and analyses • Experimental GDP by firm size, municipalities • Underground economy

6. The Canadian SNA: recent evolution • Mid 1980s • National SNA programs fully integrated • Mid 1990s • Significant investments in provincial economic statistics to meet policy objectives, integrated regional accounts • Comprehensive historical revision SNA 1993 • 2012 • Comprehensive historical revision SNA 2008 • Future • Ongoing targeted comprehensive revisions

7. Comprehensive revision 2012 • Quality • Compensation of employees, trade in commercial services, dividends in the household sector • Classification systems • Sectors: NPISH, financial vs. nonfinancial, aboriginal government • Industries and products: introduction of NAPCS • Final demand: international trade, household expenditures • Relevance • R&D and military capital, consumption of fixed capital, market value of equity

8. Current and future agenda • 2014/15 • GFS implementation , COFOG • FISIM and insurance • Production account by sector • Modernization of capital stock • Actual final consumption • Interest and dividend flow matrix • Longer term • Goods for processing and merchanting • Pension liabilities • Environmental liabilities • Financial derivatives • Head office industry • Quarterly sectored natural resources wealth • BoP: improvements and convergence to standards • Residential land and structures • Micro macro linkages for households • Other changes in assets and revaluation accounts

9. Statistics Canada’s Business Register • Built and updated with a comprehensive universe of administrative data • Use as survey frame but also statistical mechanism • For example: benchmarks for compensation of employees, operating surplus allocated by industry • Improved via survey feedback • Profiling of large complex units via Entreprise Portfolio Manager program

10. Coverage : Sources of Information Primary source of information is the Business Number registration process Registration process in Canada Revenue Agency for all major taxation programs Unique identification number BR maintained with administrative data 2.85 million simple businesses 20 thousand complex businesses (Approx. 200,000 OEs) 2020-01-02 Statistics Canada • Statistique Canada 10

11. Legal Operating Entity Types • Corporations • Sole Proprietors • Partnerships • Government Institutions • Trusts 2020-01-02 Statistics Canada • Statistique Canada 11

12. Recent Evolution

13. Reporting Capabilities Organizational and accounting practices differ from business to business Properly identify the reportable data for each operating entity Define types of “Responsibility Centers” associated with data reported 2020-01-02 Statistics Canada • Statistique Canada 13

14. ResponsibilityCentres Investment Centre Controls revenues, costs and investment funds Profit Centre Measures the performance of a division, product line, geographical area, etc. Revenue Centre Responsible for generating revenue Cost Centre Production - Concerned with making a product Support - Provides a service 2020-01-02 Statistics Canada • Statistique Canada 14

15. Standardized view of the operations for sampling purposes The information required for assigning statistical indicators is taken from the Responsibility Centers Four statistical indicators: Enterprise Company Establishment Location Statistical Indicators 2020-01-02 Statistics Canada • Statistique Canada 15

16. BR Maintenance: Automatic Update Processes Administrative information made available at the BN level on a monthly basis Strong base towards a complete coverage of the business population Dimensions required to identified sub-populations for stratification 2020-01-02 Statistics Canada • Statistique Canada 16

17. Administrative data usage Tombstone information Legal and Operating Names Business Address (***Geographical dimension) Legal Types Incorporation Information International Activity Codes Non-profit Codes 2020-01-02 Statistics Canada • Statistique Canada 17

18. Administrative data usage Other administrative information: Activity Description Business Account Status Ownership relationships - Schedule 9 of Corporation Income Tax Program 2020-01-02 Statistics Canada • Statistique Canada 18

19. Administrative data usage Size values – Key indicators GST Sales Revenue, Expenses & Assets Number of Employees & Salary & Wages 2020-01-02 Statistics Canada • Statistique Canada 19

20. Integration in economic surveys • Statistics Canada previously had 58 business surveys in the Unified Entreprise Survey (UES) • Manufacturing, distributive trades, services • Good practices : • Harmonization of content across economic surveys aligned to SNA needs • Use of tax information • Use of generalized systems for data processing • Now going further with the new Integrated Business Statistics Program (IBSP)

21. Objectives of the IBSP • Simplify and modernize processes • Improve timeliness • Reduce response burden • Realize efficiencies • Reduce development and maintenance costs

22. Features of the IBSP • Implemented in phases across all survey programs: annual and sub annual • Use of business register as central frame • Multi-modal collection emphasizing electronic data reporting, active collection management • Modular questionnaires with harmonized content • Further integration of tax data as source for financial information • Common approaches to survey estimation and processing, meta-data driven

23. Integrating Surveys - Schedule

24. SNA input to survey programs • Develop harmonized content that meets essential SNA requirements • Principal statistics and characteristic detail • Analysis and feedback on data quality • Collaborative work on program development • Strategy for evaluating time series breaks due to statistical effects • Improve SNA sector codes on BR • Recent organizational changes facilitate collaboration, process flows mobility of staff

25. Canadian SNA challenges • Managing scope of comprehensive revisions across complex, integrated system • Lack of flexibility due to fiscal requirements • Maintaining time series continuity across the dimensions of the program • Rethinking integration of historical estimates and revision policy • Documentation and communicating changes to users • Needed investments to maintain relevance (environmental accounts, G20 data gaps)