System of National Accounts Updated

The Statistical Institute of Jamaica (STATIN) is reporting that the Jamaican System of National Accounts has been updated to reflect international best practices, enhancing comparability and analytic relevance.

The revisions to the Jamaican System of National Accounts include aligning the national accounts with the United Nations System of National Accounts 2008 (SNA 2008), adoption of the 2016 revision of the Jamaica Industrial Classification (JIC 2016), rebasing constant (real) price estimates from 2007 to 2015; and incorporating new and revised data into the gross domestic product (GDP) estimates.

Acting Director of the Economic Accounting Division, STATIN, Walata Wallace, provided details on the changes during a virtual Economic Statistics Media Stakeholders Meeting on the revision to the Jamaica System of National Accounts, on July 3.

She explained that the SNA is an internationally agreed standard for compiling measures of economic activity.

Ms. Wallace further noted that the main changes in the SNA 2008 are further specification and clarification of certain concepts and the scope of some transactions, and refinement of the treatment and definition of financial instruments and assets.

She said that the reclassification of certain items, such as research and development and weapon systems, are now treated as investments rather than intermediate inputs.

“In the Jamaica context, the changes will not have any significant impact on the level of the GDP,” she said.

Other changes include adjustment in the method for calculating Financial Intermediation Services Indirectly Measured (FISIM), as well as conceptual changes such as the recording of pensions.

“The SNA 2008 recommends that FISIM applies only to interest earned on loans and interest paid on deposits. The SNA 1993 FISIM was calculated as the difference between property income receivable and interest payable,” Ms. Wallace explained.

Turning to the rebasing to 2015, she said constant price estimates now reflect a more current base year, improving the accuracy of real growth measurements.

For the adoption of JIC 2016, she explained that transition to the updated industrial classification system improves sectoral detail and consistency with national and international standards.

Some of the changes are – Transportation and Storage now excludes Telecommunications and Tour operators, real estate and business producers; Producers of Government Services will now be referred to as Public Administration and Defence and excludes public health and education and includes National Health Fund and National Housing Trust.

Furthermore, Ms. Wallace said the estimates incorporate new and revised data, including the 2017 Household Expenditure Survey (HES). She added that data from the HES was used to update the Household Final Consumption (HFC), as well as to assist in the estimation of the product groups where supply-side estimation is weak, especially those that are highly informal.

She said detailed technical notes on changes and methodologies will be prepared for transparency and stakeholder understanding and noted that the National Accounts metadata will be updated and disseminated on the Institute’s website.

Acting Director General, STATIN, Leesha Delatie-Budair, said STATIN remains committed to staying at the forefront of global statistical standards.

She informed that the application of the 2008 SNA has resulted in an upward revision of Jamaica’s gross domestic product.

Mrs. Delatie-Budair added that this revision reflects a more complete measurement of economic activity.

“Beyond its technical nature, this adoption represents a strategic enhancement to Jamaica’s economic measurement tools. It will provide policymakers, researchers and businesses, as well as the public, with a clearer, more detailed and internationally comparable view of the economy, supporting more informed decision-making and long-term development planning,” she said.

The GDP by product, along with rebased quarter 1 2025 figures, were also released during the session. Full reports, National Income and Product 2023 and Quarterly GDP by product, with accompanying communication materials will be released by the end of July 2025.