No link available
Seasonally adjusted | |||
Gross Household Saving by component | |||
Gross Disposable Income | Final Consumption Expenditure | Gross Saving | |
(B.6g+D8) | (P.3) | (B.8g) | |
Quarter | €m | ||
Q2 2013 | 21,397 | 19,539 | 1,858 |
Q3 2013 | 21,561 | 19,754 | 1,807 |
On a seasonally adjusted basis, the quarterly gross disposable income of households (B.6g) in Q3 2013 increased by €164m to €21,561m compared to the result for Q2 2013 of €21,397m. Household expenditure (P.3) increased by €215m to €19,754 over this same period. Consequently gross household saving (B.8g) decreased by €51m in the quarter.
The derived gross saving ratio, which expresses saving as a percentage of gross disposable income, decreased from 8.7 per cent in Q2 2013 to 8.4 per cent in Q3 2013 (see Background Notes - definitions).
Gross saving for the total economy (S.1) increased by €1,641m, from €6,168m in Q3 2012 to €7,809m in Q3 2013 (see Summary Table). The gross saving of non-financial corporations increased by €764m and the saving deficit of Government improved by €629m. However, households saw a fall in saving of €148m over this period.
The seasonally adjusted data series which includes Gross Disposable income, Personal Consumption of Goods and Services and Gross Saving of the Household and NPISH sector is available on our StatBank Database: Click here. The entire unadjusted series for all variables published in this release are also available at the same link. See Background Notes for definitions of the terms used. These estimates are preliminary and will be subject to revision. |
The saving deficit of Government totalled €2,843m in Q3 2013, an improvement on the Q3 2012 deficit of €3,472m. This change is mainly explained by an increase in taxes paid on production and imports (D.2).
The net borrowing (B.9) of Government was €2,817m in Q3 2013 a decrease of €1,072m on the Q3 2012 result of €3,889m. This improvement is explained by the change in the saving deficit and a reduction of €367m in gross fixed capital formation (P.5) by Government in Q3 2013.
Non-financial (S.11) and Financial (S.12) Corporations
Non-financial corporations had gross saving of €5,634m in Q3 2013 – up €764m compared with the corresponding quarter of 2012. This improvement is largely explained by an increase in net property income (D.4) of €520m. However, net lending by this sector in Q3 2013 has only increased by €18m compared to the same quarter in the previous year. This is explained by an increase in gross fixed capital formation (P.5) of €659m over this period.
Financial corporations had gross saving of €1,864m in Q3 2013 an increase of €389m on the same period of the previous year. An increase of €354m in net property income (D.4) was the main reason for the increase. Net lending (B.9) of the sector increased from €1,288m in Q3 2012 to €1,699m in Q3 2013.
Rest of the World Sector (S.2)
The net borrowing (B.9) by the rest of the world from Ireland amounted to €3,392m in Q3 2013 compared with a net borrowing of €2,180m in Q3 2012. The net borrowing position reflects the level of gross saving in the Irish economy.
Gross Disposable Income | PCE | Saving | |
2012Q1 | 22.077968444842 | 19.3383449323411 | 2.7396235125009 |
2012Q2 | 21.8447438333013 | 19.4212551514618 | 2.42348868183955 |
2012Q3 | 21.4807751827189 | 19.5469076892382 | 1.93386749348067 |
2012Q4 | 21.7129830409615 | 19.9014336264623 | 1.81154941449918 |
2013Q1 | 21.3571629693328 | 19.487170462285 | 1.86999250704785 |
2013Q2 | 21.3967604384417 | 19.5386579276796 | 1.85810251076215 |
2013Q3 | 21.5611001084644 | 19.7539903908755 | 1.80710971758893 |
Table 1: Quarterly Accounts by Institutional Sector, Q1 2012 - Q3 2013 Summary | ||||||||||
€ million | ||||||||||
Key Variables | Quarter | S.2 Rest of World | S.1 Total Economy | S.IN Not sectorized | S.11 Non-financial corporations | S.12 Financial corporations | S.13 General government | S.14+S.15 Households including NPISH | ||
(a) | B.1*g | Gross domestic product | Q1 2012 | 39,846 | 3,804 | 21,322 | 3,407 | 5,577 | 5,736 | |
Q2 2012 | 42,163 | 3,871 | 23,053 | 3,570 | 5,305 | 6,365 | ||||
Q3 2012 | 41,281 | 4,148 | 22,249 | 3,488 | 5,340 | 6,056 | ||||
Q4 2012 | 40,648 | 4,669 | 22,059 | 3,475 | 5,313 | 5,132 | ||||
Q1 2013 | 39,321 | 4,632 | 20,397 | 3,339 | 5,392 | 5,561 | ||||
Q2 2013 | 41,798 | 3,279 | 23,123 | 3,593 | 5,292 | 6,511 | ||||
Q3 2013 | 42,287 | 4,906 | 22,522 | 3,484 | 5,104 | 6,271 | ||||
(b) | B.2g/B.3g | Gross operating surplus / Mixed income | Q1 2012 | 18,682 | 327 | 11,437 | 1,828 | 688 | 4,402 | |
Q2 2012 | 21,109 | 346 | 13,006 | 2,099 | 688 | 4,971 | ||||
Q3 2012 | 19,832 | 339 | 12,177 | 1,955 | 688 | 4,673 | ||||
Q4 2012 | 20,033 | 334 | 12,313 | 1,983 | 688 | 4,715 | ||||
Q1 2013 | 17,569 | 323 | 10,767 | 1,705 | 602 | 4,172 | ||||
Q2 2013 | 21,082 | 344 | 13,043 | 2,103 | 602 | 4,991 | ||||
Q3 2013 | 20,050 | 348 | 12,365 | 1,978 | 602 | 4,758 | ||||
(c) | D.1_D.4 | Net Primary Income | Q1 2012 | 12,575 | 0 | -7,314 | -560 | 2,789 | 17,660 | |
Q2 2012 | 12,869 | 0 | -7,470 | -1,069 | 3,731 | 17,677 | ||||
Q3 2012 | 13,628 | 0 | -6,673 | -289 | 2,914 | 17,676 | ||||
Q4 2012 | 15,135 | 0 | -5,798 | -387 | 3,430 | 17,891 | ||||
Q1 2013 | 15,453 | 0 | -5,076 | -36 | 3,085 | 17,480 | ||||
Q2 2013 | 12,915 | 0 | -7,268 | -945 | 3,314 | 17,814 | ||||
Q3 2013 | 15,026 | 0 | -6,153 | 65 | 3,469 | 17,645 | ||||
(d) | B.5g | Gross national income = (b + c) | Q1 2012 | 31,258 | 327 | 4,124 | 1,268 | 3,477 | 22,062 | |
Q2 2012 | 33,978 | 346 | 5,536 | 1,030 | 4,418 | 22,648 | ||||
Q3 2012 | 33,460 | 339 | 5,504 | 1,666 | 3,601 | 22,350 | ||||
Q4 2012 | 35,168 | 334 | 6,516 | 1,595 | 4,118 | 22,605 | ||||
Q1 2013 | 33,022 | 323 | 5,691 | 1,670 | 3,687 | 21,652 | ||||
Q2 2013 | 33,997 | 344 | 5,775 | 1,157 | 3,916 | 22,805 | ||||
Q3 2013 | 35,075 | 348 | 6,211 | 2,042 | 4,071 | 22,403 | ||||
(e) | D.5_D.7 | Net Current Transfers | Q1 2012 | -735 | 0 | -241 | 590 | -379 | -705 | |
Q2 2012 | -565 | 0 | -1,193 | 254 | 1,225 | -852 | ||||
Q3 2012 | -604 | 0 | -633 | 445 | 771 | -1,186 | ||||
Q4 2012 | -518 | 0 | -1,385 | 223 | 2,966 | -2,322 | ||||
Q1 2013 | -753 | 0 | -454 | 513 | 240 | -1,052 | ||||
Q2 2013 | -647 | 0 | -1,429 | 188 | 2,101 | -1,507 | ||||
Q3 2013 | -465 | 0 | -577 | 471 | 800 | -1,158 | ||||
(f) | B.6g | Gross disposable income = (d + e) | Q1 2012 | 30,523 | 327 | 3,883 | 1,859 | 3,098 | 21,357 | |
Q2 2012 | 33,413 | 346 | 4,343 | 1,284 | 5,644 | 21,797 | ||||
Q3 2012 | 32,857 | 339 | 4,871 | 2,111 | 4,372 | 21,163 | ||||
Q4 2012 | 34,650 | 334 | 5,130 | 1,818 | 7,084 | 20,283 | ||||
Q1 2013 | 32,269 | 323 | 5,237 | 2,183 | 3,927 | 20,599 | ||||
Q2 2013 | 33,350 | 344 | 4,346 | 1,345 | 6,017 | 21,298 | ||||
Q3 2013 | 34,610 | 348 | 5,634 | 2,513 | 4,871 | 21,245 | ||||
(g) | P.3+D8 | Use of disposable income | Q1 2012 | -26,342 | 0 | 0 | -644 | -7,175 | -18,523 | |
Q2 2012 | -26,167 | 0 | 0 | -625 | -7,323 | -18,219 | ||||
Q3 2012 | -26,689 | 0 | 0 | -636 | -7,844 | -18,209 | ||||
Q4 2012 | -28,532 | 0 | 0 | -643 | -7,090 | -20,799 | ||||
Q1 2013 | -26,288 | 0 | 0 | -651 | -7,022 | -18,615 | ||||
Q2 2013 | -26,239 | 0 | 0 | -643 | -7,333 | -18,262 | ||||
Q3 2013 | -26,802 | 0 | 0 | -649 | -7,714 | -18,438 | ||||
(h) | B.8g | Gross saving=(f+g) | Q1 2012 | 4,181 | 327 | 3,883 | 1,215 | -4,077 | 2,834 | |
Q2 2012 | 7,246 | 346 | 4,343 | 659 | -1,679 | 3,577 | ||||
Q3 2012 | 6,168 | 339 | 4,871 | 1,475 | -3,472 | 2,954 | ||||
Q4 2012 | 6,118 | 334 | 5,130 | 1,175 | -6 | -515 | ||||
Q1 2013 | 5,981 | 323 | 5,237 | 1,532 | -3,095 | 1,984 | ||||
Q2 2013 | 7,111 | 344 | 4,346 | 702 | -1,317 | 3,036 | ||||
Q3 2013 | 7,809 | 348 | 5,634 | 1,864 | -2,843 | 2,806 | ||||
(i) | Changes in Capital Accounts | Q1 2012 | -811 | 327 | -734 | -63 | -148 | -192 | ||
Q2 2012 | -2,302 | 346 | -2,211 | 278 | -511 | -203 | ||||
Q3 2012 | 130 | 339 | -147 | -10 | 189 | -241 | ||||
Q4 2012 | 840 | 334 | 229 | -10 | -75 | 363 | ||||
Q1 2013 | -702 | 323 | -265 | 944 | -1,432 | -273 | ||||
Q2 2013 | -34 | 344 | 268 | 282 | -584 | -345 | ||||
Q3 2013 | -169 | 348 | -784 | 21 | 586 | -339 | ||||
(j) | K.1 | Consumption of fixed capital | Q1 2012 | 4,031 | 2,137 | 172 | 606 | 1,116 | ||
Q2 2012 | 4,170 | 2,224 | 179 | 606 | 1,161 | |||||
Q3 2012 | 4,118 | 2,191 | 177 | 606 | 1,144 | |||||
Q4 2012 | 4,060 | 2,155 | 174 | 606 | 1,125 | |||||
Q1 2013 | 4,044 | 2,174 | 175 | 560 | 1,135 | |||||
Q2 2013 | 4,178 | 2,258 | 182 | 560 | 1,179 | |||||
Q3 2013 | 4,248 | 2,301 | 186 | 560 | 1,202 | |||||
(k) | B.9 | Net lending(+)/Net borrowing(-)=(h+i)-j | Q1 2012 | 661 | -661 | 653 | 1,012 | 979 | -4,831 | 1,527 |
Q2 2012 | -776 | 775 | 691 | -92 | 758 | -2,796 | 2,213 | |||
Q3 2012 | -2,180 | 2,180 | 679 | 2,532 | 1,288 | -3,889 | 1,569 | |||
Q4 2012 | -2,899 | 2,899 | 668 | 3,204 | 991 | -687 | -1,278 | |||
Q1 2013 | -1,234 | 1,234 | 646 | 2,798 | 2,300 | -5,087 | 576 | |||
Q2 2013 | -2,898 | 2,898 | 687 | 2,356 | 803 | -2,460 | 1,512 | |||
Q3 2013 | -3,392 | 3,392 | 695 | 2,550 | 1,699 | -2,817 | 1,265 |
Quarterly Accounts by Institutional Sector, Q3 2013 €million | |||||||||||||||||
Uses | CURRENT ACCOUNTS | Resources | |||||||||||||||
S.14+S.15 Households including NPISH | S.13 General government | S.12 Financial corporations | S.11 Non-financial corporations | S.IN Not sectorized | S.1 Total economy | S.2 Rest of World | S.1+S.2 Sum over sectors | S.1+S.2 Sum over sectors | S.2 Rest of World | S.1 Total economy | S.IN Not sectorized | S.11 Non-financial corporations | S.12 Financial corporations | S.13 General government | S.14+S.15 Households including NPISH | ||
1.2 GENERATION OF INCOME ACCOUNT | |||||||||||||||||
B.1*g | Gross domestic product | 42,287 | 4,906 | 22,522 | 3,484 | 5,104 | 6,271 | ||||||||||
1,545 | 4,502 | 1,477 | 9,706 | 17,230 | 131 | 17,362 | D.1 | Compensation of employees | |||||||||
126 | 0 | 30 | 511 | 4,810 | 5,477 | 5,477 | D.2 | Taxes on production and imports, paid | |||||||||
D.3 | Subsidies, received | 469 | 469 | 251 | 60 | 0 | 0 | 158 | |||||||||
4,758 | 602 | 1,978 | 12,365 | 348 | 20,050 | B.2g/ B.3g | Gross operating surplus/ Mixed income | ||||||||||
1.3 ALLOCATION OF PRIMARY INCOME ACCOUNT | |||||||||||||||||
B.2g/ B.3g | Gross operating surplus/ Mixed income | 20,050 | 348 | 12,365 | 1,978 | 602 | 4,758 | ||||||||||
D.1 | Compensation of employees | 17,362 | 176 | 17,185 | 17,185 | ||||||||||||
D.2 | Taxes on production and imports, received | 5,477 | 101 | 5,375 | 5,375 | ||||||||||||
358 | 358 | 112 | 469 | D.3 | Subsidies, paid | ||||||||||||
271 | 1,814 | 11,495 | 9,646 | 23,225 | 13,437 | 36,662 | D.4 | Property income | 36,662 | 20,614 | 16,048 | 3,492 | 11,560 | 265 | 731 | ||
221 | 1,814 | 4,375 | 1,368 | 7,777 | 8,150 | 15,927 | D.41 | Interest | 15,927 | 5,749 | 10,178 | 121 | 9,657 | 231 | 169 | ||
0 | 0 | 4,500 | 4,075 | 8,575 | 1,802 | 10,377 | D.42 | Distributed income of corporations | 10,377 | 8,280 | 2,097 | 32 | 1,757 | 34 | 274 | ||
0 | 0 | 2,067 | 4,203 | 6,270 | 3,485 | 9,756 | D.43 | Reinvested earnings on direct foreign investment | 9,756 | 6,270 | 3,485 | 3,340 | 146 | 0 | 0 | ||
0 | 0 | 552 | 0 | 552 | 0 | 552 | D.44 | Property income attributed to insurance policy holders | 552 | 315 | 237 | 0 | 0 | 0 | 237 | ||
50 | 0 | 0 | 0 | 50 | 50 | D.45 | Rent | 50 | 50 | 0 | 0 | 0 | 50 | ||||
22,403 | 4,071 | 2,042 | 6,211 | 348 | 35,075 | B.5g | Gross national income |
Quarterly Accounts by Institutional Sector, Q3 2013 €million | |||||||||||||||||
Uses | CURRENT ACCOUNTS | Resources | |||||||||||||||
S.14+S.15 Households including NPISH | S.13 General government | S.12 Financial corporations | S.11 Non-financial corporations | S.IN Not sectorized | S.1 Total economy | S.2 Rest of World | S.1+S.2 Sum over sectors | S.1+S.2 Sum over sectors | S.2 Rest of World | S.1 Total economy | S.IN Not sectorized | S.11 Non-financial corporations | S.12 Financial corporations | S.13 General government | S.14+S.15 Households including NPISH | ||
1.5 SECONDARY DISTRIBUTION OF INCOME ACCOUNT | |||||||||||||||||
B.5g | Gross national income | 35,075 | 348 | 6,211 | 2,042 | 4,071 | 22,403 | ||||||||||
3,694 | 0 | 154 | 476 | 4,325 | 19 | 4,343 | D.5 | Current taxes on income, wealth, etc. | 4,343 | 20 | 4,324 | 4,324 | |||||
3,584 | 3,584 | 0 | 3,584 | D.61 | Social contributions | 3,584 | 0 | 3,584 | 0 | 1,023 | 2,457 | 103 | |||||
172 | 5,515 | 374 | 0 | 6,061 | 77 | 6,138 | D.62 | Social benefits other than social transfers in kind | 6,138 | 77 | 6,061 | 6,061 | |||||
1,248 | 487 | 1,906 | 262 | 3,902 | 710 | 4,612 | D.7 | Other current transfers | 4,612 | 1,174 | 3,438 | 161 | 1,882 | 20 | 1,375 | ||
21,245 | 4,871 | 2,513 | 5,634 | 348 | 34,610 | B.6g | Gross disposable income | ||||||||||
1.6 USE OF DISPOSABLE INCOME ACCOUNT | |||||||||||||||||
B.6g | Gross disposable income | 34,610 | 348 | 5,634 | 2,513 | 4,871 | 21,245 | ||||||||||
19,087 | 7,714 | 26,802 | P.3 | Final consumption expenditure | |||||||||||||
649 | 649 | 0 | 649 | D.8 | Adjustment for the change in net equity of households in pension funds reserves | 649 | 0 | 649 | 649 | ||||||||
2,806 | -2,843 | 1,864 | 5,634 | 348 | 7,809 | B.8g | Gross saving | ||||||||||
1.7 EXTERNAL ACCOUNT | |||||||||||||||||
44,261 | P.6 | Exports of goods and services | |||||||||||||||
P.7 | Imports of goods and services | 33,160 | |||||||||||||||
-11,102 | B.11 | External balance of goods & services | |||||||||||||||
64,810 | 14,486 | 79,296 | D.1 to D.8 | Primary incomes and current transfers | 79,296 | 22,163 | 57,133 | ||||||||||
-3,425 | B.12 | Current external balance |
Quarterly Accounts by Institutional Sector, Q3 2013 €million | |||||||||||||||||
Changes in assets | CAPITAL ACCOUNTS | Changes in liabilities and net worth | |||||||||||||||
S.14+S.15 Households including NPISH | S.13 General government | S.12 Financial corporations | S.11 Non-financial corporations | S.IN Not sectorized | S.1 Total economy | S.2 Rest of World | S.1+S.2 Sum over sectors | S.1+S.2 Sum over sectors | S.2 Rest of World | S.1 Total economy | S.IN Not sectorized | S.11 Non-financial corporations | S.12 Financial corporations | S.13 General government | S.14+S.15 Households including NPISH | ||
1.8 CHANGE IN NET WORTH DUE TO SAVING AND CAPITAL TRANSFERS ACCOUNT | |||||||||||||||||
B.8g | Gross saving | 7,809 | 348 | 5,634 | 1,864 | -2,843 | 2,806 | ||||||||||
B.12 | Current external balance | -3,425 | |||||||||||||||
555 | 119 | 0 | 18 | 692 | 1 | 693 | D.9 | Capital transfers | 693 | 15 | 678 | 32 | 0 | 575 | 72 | ||
1,202 | 560 | 186 | 2,301 | 4,248 | K.1 | Consumption of fixed capital | |||||||||||
1,121 | -2,947 | 1,679 | 3,348 | 348 | 3,548 | -3,411 | 137 | B.10.1 | Changes in net worth due to saving and capital transfers | ||||||||
1.9 ACQUISITION OF NON-FINANCIAL ASSETS ACCOUNT | |||||||||||||||||
B.10.1 | Changes in net worth due to saving and capital transfers | 137 | -3,411 | 3,548 | 348 | 3,348 | 1,679 | -2,947 | 1,121 | ||||||||
1,057 | 429 | 165 | 3,080 | -348 | 4,384 | 4,384 | P.5 | Gross capital formation | |||||||||
K.1 | Consumption of fixed capital | 4,248 | 4,248 | 2,301 | 186 | 560 | 1,202 | ||||||||||
0 | 0 | 0 | 19 | 19 | -19 | 0 | K.2 | Acquisitions less disposals of non-produced non-financial assets | |||||||||
1,265 | -2,817 | 1,699 | 2,550 | 695 | 3,392 | -3,392 | 0 | B.9 | Net lending (+) / net borrowing (-) |
Description of institutional sectors
In the sector accounts, institutional sectors are distinguished not in terms of the nature of their production activity (such as agriculture, industry, services etc) but rather in terms primarily of the institutional form of the units that make them up. Thus companies, whether engaged in commercial non-financial or financial business, are grouped in a different sector from households, even though the latter are in many cases also engaged in commercial production, and from government or other non-market producers such as voluntary agencies.
Institutional Sectors The classification system is that of the European System of Accounts 1995 (ESA95). The sectors and sub-sectors distinguished in the present publication are as follows:
S.1 Resident Economy is the sum of all the sectors of the domestic economy.
S.11 Non-Financial Corporations are corporate bodies producing goods and non-financial services on a commercial basis. They include public limited companies, private companies and other corporate forms of business, whether owned by residents (including the government) or non-residents or both. In particular, therefore, Irish subsidiaries of foreign companies and the Irish branches of foreign companies operating in Ireland on a branch basis are included; while the foreign subsidiaries of Irish companies and the foreign branches of Irish companies operating abroad are excluded (they form part of the Rest of the World sector S.2). The business activities of self-employed persons (quasi-corporations) are in principle to be included here if separate accounts are available for statistical purposes.
S.12 Financial Corporations are corporate bodies producing financial services on a commercial basis. As with S.11, they can take various legal forms, with a range of ownership arrangements. They include monetary financial institutions, other financial intermediaries, financial auxiliaries and insurance corporations and pension funds.
S.13 General Government consists of central and local government and the social security fund. Central government includes the National Pension Reserve Fund, and non-commercial agencies owned and funded by government, but does not include commercial state-owned companies (which are proper to S.11 or S.12 as appropriate).
S.14 + S.15 Households (S.14) and Non-Profit Institutions Serving Households (S.15). S.14 consists of persons in their capacity as holders of financial assets or as borrowers. The business assets and liabilities of unincorporated self-employed persons are also mainly reflected in this sector. S.15 consists of non-profit institutions such as charities and non-commercial agencies not owned by the government, such as some schools and hospitals.
S.2 Rest of the World. The figures represent the economy’s transactions with non-residents. The conceptual definition is the same as in the balance of payments (BOP) statistics. In particular, non-residents include foreign subsidiaries of Irish companies, the foreign branches of Irish companies that operate abroad on a branch basis, and the head offices of foreign companies that operate in Ireland on a branch basis.
S.1N Not Sectorised. In the non-financial accounts an additional residual sector is used to report taxes and subsidies in the Generation of Income Account (Account 1.2) as it is not possible to allocate these amounts to Institutional Sectors. In addition throughout these accounts S.1N is used to report the amounts that appear as the statistical discrepancy in the National Income and Expenditure GDP accounts, arising from the use of two independent estimates of GDP (from the Income and Expenditure approaches). In the Annual National Accounts NIE tables 3 and 5, the official estimate of GDP is reported as the average of the two measures, and the discrepancy is therefore displayed as half the difference between the two independent estimates (and thus with different signs in the two tables). The discrepancy is projected forward on a quarterly basis in line with the trends in the Expenditure components and is presented in Table 2 of the Quarterly National Accounts. In the sector accounts it appears as the first balancing item in the sequence (in the gross value added item in the production account), and is then carried through successive accounts via the balancing item. In the final non-financial account, the full amount of the discrepancy then emerges as the unallocated net lending or borrowing in the economy.
Description of detailed non-financial accounts
Sector accounts present a coherent overview of all economic processes and the roles played by the various sectors. Each economic process is described in a separate account. The accounts describe successively generation of income, primary and secondary income distribution, final consumption, redistribution by means of capital transfers and capital formation. Note that the Production Account (1.1) from the Annual Accounts is not included in these quarterly accounts as the data is not available on a quarterly basis. The accounts record economic transactions, distinguishing between uses and resources, (e.g. the resources side of the transaction category D.41 Interest records the amounts of interest receivable by the different sectors of the economy and the uses side shows interest payable) with a special item to balance the two sides of each account. By passing on the balancing item from one account to the next a connection is created between successive accounts.
The accounts are compiled for the total economy and include accounts for separate domestic sectors and the Rest of the World sector. In this way the sector accounts describe:
The successive accounts are explained in more detail below.
Current Accounts:
1.1 Production Account
This Account is not presented in the Quarterly Non-Financial Accounts as quarterly data is not available.
1.2 Generation of Income Account
This account displays the transactions through which Gross Domestic Product at market prices is distributed to labour (compensation of employees), capital (operating surplus) and government (the balance of taxes and subsidies on production). The balancing item for the Household and NPISH sector in this account is called mixed income, because apart from operating surplus it also contains compensation for work by self-employed persons and their family members. B.2g/B.3g Gross Operating Surplus / Gross Mixed Income is the balancing item for the entire account.
1.3 Allocation of Primary Income Account
This account records, as resources, the income from direct participation in the production process, as well as property income received in exchange for the use of land, financial resources and other intangible assets. In addition, this account records the taxes on production and imports received by the government. On the uses side, property income is recorded as well as the subsidies paid by the government.
On this account the interest paid and received are recorded excluding imputed bank services (financial intermediation services indirectly measured -FISIM). In the national accounts insurance technical reserves are seen as a liability of insurance enterprises and pension funds to policyholders. Therefore, the receipts from investing these reserves are recorded as payments from insurance enterprises and pension funds to households, in the form of property income attributed to insurance policy holders and pension scheme members. The balancing item of this account for each sector is B.5g Gross National Income. The Primary Income for the total economy is the National Income.
1.4 Memorandum -Entrepreneurial Income Account
This account is not presented in the Quarterly series.
1.5 Secondary Distribution of Income Account
The secondary distribution of income account shows how primary income is redistributed by means of current taxes on income and wealth, social contributions (including contributions to pension schemes), social benefits (including pension benefits) and other current transfers. The balancing item of this account is B.6g Gross Disposable Income. For the consuming sectors (Households, NPISH and General Government) this item is passed on to 1.6 Use of Disposable Income Account. For the other sectors the disposable income is generally equal to savings. This is then passed on to the capital account.
1.6 Use of Disposable Income Account
This account shows the element of disposable income that is spent on final consumption and also the element that is saved. As mentioned above final consumption only exists for Households, NPISH and General Government. The net equity of Households in pension funds and life insurance reserves are seen as financial assets that belong to Households. Changes in these reserves need to be included in the saving of Households. However, contributions to pension schemes and pension benefits have already been recorded on 1.5 Secondary Distribution of Income Account (as social contributions and social benefits). Therefore, an adjustment is needed to include in the saving of Households the change in pension funds reserves on which they have a definite claim. This adjustment is called D.8 ‘Adjustment for the change in net equity in pension funds reserves’. There is no need for a similar adjustment concerning life insurance because life insurance premiums and benefits are not recorded as current transactions. The balancing item for this account is B.8g Gross Saving.
1.7 External account
This account records the summarised transactions of S.2 the Rest of the World sector, including on the uses side exports of goods and services, primary incomes and current transfers receivable. The resources side of this account includes imports of goods and services together with primary incomes and transfers payable. The balancing item is B.12 Current External Balance, which records the balance on current accounts with the Rest of the World.
Capital accounts:
1.8 Change in Net Worth due to Saving and Capital Transfers
On this account the capital transfers are recorded and combined with gross saving and the current external balance. The resulting balancing item is B.10.1 Changes in Net Worth due to Saving and Capital Transfers.
1.9 Acquisition of Non-Financial Assets Account
On this account gross fixed capital formation, changes in inventories, acquisitions less disposals of valuables and non-produced non-financial assets are recorded among the uses. The decline in the value of fixed capital goods caused by consumption of fixed capital goods is recorded among the resources. The balancing item is Net Lending (+) or Borrowing (-). It shows the amount a sector can lend / invest or has to borrow as a result of its current and capital transactions.
Seasonal Adjustment
Seasonally adjusted estimates of Household Saving are done using the indirect seasonal adjustment approach. Under this approach the two main aggregates Household Disposable Income and Final Consumption Expenditure of Households are independently adjusted. In the case of Household Saving, however, this estimate is derived by taking the difference between the two adjusted series of Household Disposable Income and Final Expenditure of Households. This method for estimating the seasonally adjusted value for a small net residual of two large aggregates, such as Household Saving is considered a more appropriate estimation procedure.
As part of the seasonal adjustment process, ARIMA models are identified for each series based on unadjusted data spanning Q1 2002 to Q2 2012. These models are then applied to the entire series (Q1 2002 to Q3 2013). Seasonal factors and the parameters of the ARIMA models are updated each quarter.
The adjustments are completed by applying the X-12-ARIMA model, developed by the U.S. Census Bureau to the unadjusted data. This methodology estimates seasonal factors while also taking into consideration factors that impact on the quality of the seasonal adjustment such as, for example:
• Calendar effects, e.g. the timing of Easter
• Outliers, temporary changes and level shifts in the series
For additional information on the use of X-12-ARIMA see (Findley, D.F., B.C. Monsell, W.R. Bell, M.C. Otto, and B. Chen (1998), “New Capabilities and Methods of the X-12-Arima Seasonal Adjustment Program”, Journal of Business & Economic Statistics, 16, pp. 127-177.)
Definition of Household Saving Ratio
The household saving ratio is gross household saving expressed as a percentage of total resources i.e. the sum of gross household disposable income and the adjustment for the change in net equity of households in pension fund reserves. Household saving in the relevant quarter represent that part of disposable income that is not spent on final consumption of goods and services. The use of these saving either for financial investment or debt reduction is not recorded in these accounts but is recorded in the financial account (see Quarterly Financial Accounts http://www.centralbank.ie/polstats/stats/qfaccounts/Pages/releases.aspx published by the Central Bank of Ireland and Institutional Sector Accounts Non-Financial and Financial 2012 (PDF 1,133KB) for annual integrated financial and non financial account.)
Scan the QR code below to view this release online or go to
http://www.cso.ie/en/releasesandpublications/er/isanf/institutionalsectoraccountsnonfinancialquarter32013/