Ghana’s Experience in Setting Up a Plan for the Implementation of the 2008 SNA

1. Ghana’s Experience in Setting Up a Plan for the Implementation of the 2008 SNA 2nd Meeting of the Continental Steering Committee Addis Ababa, 2-4 April, 2014

2. Outline • Introduction • Proposed Implementation of SNA 2008 • New Data Sources • Plans for Further Improvement • Required Technical Assistance • Challenges • Conclusion

3. Introduction • The SNA is an agreed set of international standards to measure economic activity (GDP) in a country within a given period. • The 2008 SNA is an update of the 1993 SNA which is also a revision of the 1968 SNA. • The SNA 2008 measures GDP and its components on basic prices rather than on factor cost; • It uses the techniques of double deflation, exploration costs, financial intermediation services indirectly measured (FISM) and many other techniques.

4. Introduction cont. Fundamental changes in the 2008 SNA; • Expenditures on research now treated as capital formation and not as intermediate consumption • Weapon systems classified as capital formation • Measurement of non-life insurance services • Revised and detailed calculation of FISIM • Revision of process of measuring public-private partnerships • Revision of process of measuring transactions between central government and public corporations • Captures activities for loan guarantees transactions

5. 2008 SNA: An Update of the 1993 SNA Updating of the current SNA to 2008 SNA is essential since; • It leads to closer consistency with other statistical concepts in other manuals such as BOP manual • It improves the methods of computing GDP

6. Plans for Implementation of SNA 2008 The implementation of the 2008 SNA involves three main processes; • Rebasing of the current GDP • Migration from the current SNA version (SNA1993 in the case of Ghana) to SNA 2008 • Improving the statistical information gathering system to ensure the information required for SNA 2008-based national accounts are available

7. Rebasing of the Current GDP Rebasing of the GDP is essential because the implementation of the new system (SNA 2008); • May lead to changes that can affect the level of GDP • Will affect computation of growth rates and other indicators

8. Development of the statistical information gathering system to take care of all the 2008 SNA data requirements Ghana’s National Accounts requires new data sources such as: • Software development activities • Military delivery expenditure • Detailed activities of companies’ exploration costs • Production data on all crops (currently only 12 out of 67 crops covered in GDP estimation • Livestock (poultry, piggery not included – use only cattle, goats and sheep as proxy)

9. Development of the statistical information gathering system to take care of the 2008 SNA data requirements (Contd.) • Some Forestry activities not included in current GDP Production such as; • Hunting • Charcoal production • Other minor forestry activities; • Information available covers log production, afforestation and wildlife; • Over dependence on administrative data • Need for regular censuses and surveys (especially in the agricultural and industrial sectors) to obtain data on the informal sector activities which make up about 60% of GDP.

10. Plans for further Improvement in data quality and sources of data in Ghana • Improve national data system through conduct of censuses and surveys such as; • Integrated Business Establishment Survey • Agricultural Census • Economic Surveys • Population and Housing Census • Improve exhaustiveness and coverage of economic activities (e.g., informal sector activities,military weapons and fixed assets, etc.) • Measuring economic activities not covered by the formal sector statistics (non-observed economy e.g., gambling, illegal mining, drug trafficking)

11. Required Technical Assistance • Update of Supply & Use Tables (SUT) to derive benchmark estimates for GDP components such as Total Output, Intermediate Consumption, and Gross Value Added by activity. Current one was compiled in 2004. • Update the products in different sectors to conform to Central Product Classification (CPC version 2); • Training on ISIC revision 4 to enhance the understanding of staff • Update industrial activities according to ISIC revision 4

12. Required Technical Assistance (Contd.) A local technical committee on national accounts to be set up to validate: • Quality of data used • Methodology adopted • Computations Until now, GSS has depended on external experts (especially those from IMF)

13. Challenges • Inadequate capacity within GSS to update the SUT • Unavailability of comprehensive data to facilitate migration to SNA 2008 • Unavailability of funds to carry out required surveys and censuses

14. Conclusion • GSS is committed to a continuous improvement in the compilation of National Accounts statistics; • GSS plans to adopt SNA 2008 in 2015 when data from the GLSS6, IBES and Census of Agriculture are expected to be available for rebasing the GDP; • Technical Assistance needed to help GSS overcome some of the identified challenges and have a smooth transition to SNA 2008

15. Thank you for your kind attention!