| Location: | Ardee Road, Dublin |
|---|---|
| Date: | Tuesday, 18th July 2023 |
| Present: | Diarmuid Canning (BSTAI); Carolyn Marren (BSTAI); Thomas Conefrey (Central Bank); Michael Flanagan (D/Fin); Oisín Tarrant (D/Fin); Eoin Kenny (ESRI; Kevin Timoney (IFAC); Killian Carroll (IFAC); Tom McDonnell (NERI): David Purdue (NTMA); Simon Barry (Independent; remote attendee) |
| CSO: Chris Sibley; John Sheridan; Justin Flannery; Gordon Cavanagh; Oisín Mangan; Annette Hayes; Ruth O’Shaughnessy. |
Carolyn Marren and Diarmuid Canning from the Business Studies Teachers’ Association of Ireland were welcomed to the MSLG. Questions on the 2023 Leaving Certificate paper referencing CSO infographics and data were discussed.
The Annual National and International Accounts were reviewed, following their publication on Friday 14th July 2023. Volatility in the Balance of Payments primary income of Redomiciled PLCs during 2021 was largely explained by significant COVID-related profits being made in foreign subsidiary companies. The sector is structurally stable.
The level of Investment in plant and equipment was revised following the inclusion of the annual population dataset (Census of Industrial Production and Annual Services Inquiry). Consequently, investment by the domestic sector is lower than was previously published in the sample-based quarterly data.
The reallocation of investment between Other Building & Construction and Dwellings was discussed. Investigations are ongoing into other potential data sources to further break out the Other Building & Construction classification.
The household savings rate; data suppression due to confidentiality restrictions; outstanding items from the ESRG recommendations; and the data sources and methodology used for employee numbers in the Compensation of Employees chapter of the ANA were also discussed.
Justin Flannery summarised revisions to Personal Consumption Expenditure (PCE) in the Annual National Accounts (ANA). 2022 data are still provisional, as CIP and PRODCOM are not yet available. The most recent census data will also be included in next year’s ANA. It should be noted that 2024 is a benchmark revision year. Regarding quarterly revisions, while year-on-year trends did not change, significant changes were made to weights, particularly for electricity and gas. The CSO classification of electricity and gas is being reviewed to ensure it aligns with COICOP.
Revisions made in the catering and accommodation sector, and the associated data sources, were discussed. The high-frequency VAT data is not being formally used as a data source for PCE, as detailed data are not consistent with the headline aggregates, and there is a lot of sectoral volatility. The construction sector is currently being used as a proof of concept for the wider use of VAT data across the CSO.
John Sheridan presented an overview of the US Current Account. FDI income outflows have increased significantly: this is related to both IP located in Ireland, and also to IP located abroad, as can be seen from the large royalty imports. Pharmaceuticals and ICT are the main growth drivers, and while there was a strong pandemic effect, general industry growth was evident both before and after the pandemic. The CSO will prepare dummy examples of MNE structures and value chains for a future MSLG meeting to illustrate some of the discussed effects.