Khaberni - The International Monetary Fund said, in a new report, that the comprehensive review of the statistical framework for national accounts and gross domestic product in Jordan "reflects improvements in data sources and methodologies," and provides a more accurate picture of the economy.
The Fund explained, according to the fourth review report under the Extended Fund Facility and the first review under the arrangements of the Resilience and Sustainability Facility with Jordan, published by the IMF and a copy of which was received by "the Kingdom", that redefining the base year for national accounts "is crucial to ensure the provision of high-quality and consistent time series".
The General Statistics Department completed the process of redefining the base year for national accounts, which lasted four years, after the last update in 2016, resulting in an upward revision of nominal gross domestic product by about 10%, reflecting both improvements in methodologies and expanding the scope of coverage of official and unofficial economic activities.
The Fund noted that the process, which includes reviews of data sources and methodologies, reflects the government's determination to improve the timing and quality of national accounts data, thus enhancing and supporting the decision-making process and reflecting the current economic structures and prices.
He indicated that this process provides a more accurate picture of the economy, including emerging industries and unmonitored sectors, and serves as a fundamental component for evidence-based policy-making.
The Fund highlighted that the process resulted in an upward revision of nominal gross domestic product by about 10%, with most of this adjustment attributed to improvements in the construction, local trade, electricity, real estate, and transport sectors, and the transition of the national accounts system for foreign trade data from a specific to a general system.
As a result, the scope of coverage of official and unofficial activities in the national accounts was expanded, with newly discovered official and unofficial activities estimated to account for approximately 40% and 60% respectively of the total revision. After redefining the base year, the contributions of sectors to the total domestic value added remained largely stable, with industrial activities gaining relative importance compared to service activities.
The improvements in data sources included utilizing the Economic Census for 2023, the Income and Expenditure Survey for 2022, digitization of financial data at the company level from the Companies Monitor Department, data from producers' associations, administrative data from various ministries and public institutions, among other sources.
The Fund explained; within the methodological improvements framework, the General Statistics Department adhered to international practices in estimating unmonitored economic activities, implemented the main recommendations of the National Accounts System for 2008, and adopted the International Standard Industrial Classification at a four-digit level. Free zone activities and e-commerce were included within production boundaries. Implicitly measured financial intermediation services; implicit fees charged by banks, are no longer deducted from total value added; instead, they were allocated across different sectors and uses according to international standards.
