Quality Report GNI Questionnaire 2015
The Netherlands

21 September 2015

1

Content
Part 1: General information ........................................................................................................ 3
1.1 Major changes and improvements to sources and methods of national accounts ....... 4
1.2

Changes in the revision policy and timetable for finalising the estimates .................. 5

1.3 Results of any investigations on the quality of GNI and its components ........................ 5
1.4 Description of developments in major sources ................................................................ 6
Part 2: Changes to sources and methods for the final estimates ................................................ 7
Part 3: Revisions to years 2010 to 2013 ..................................................................................... 8
3.1 Routine (current) revisions .......................................................................................... 8
3.2

Revisions related to the work on reservations ............................................................. 9

3.3

Other revisions due to changes in methods and sources ........................................... 10

3.4

Revisions due to the transition from ESA 95 to ESA 2010....................................... 11

Part 4: Revisions related to GNI reservations (2002-2010) ..................................................... 15

2

Part 1: General information
Compared to the GNI Questionnaire 2014, the GNI estimates for 2002-2009 were revised as a
result of revisions related to transversal reservation I (cross border property income flows).
The total magnitude of these revisions for the years 2002 -2009 is indicated in Table 1.
Table 1: Revisions to Dutch GNI (ESA95 based) resulting from GNI reservations for 2002-2009
(As percentage of ESA95 GNI (excluding the allocation of FISIM) from the 2014 Questionnaire)

2002 2003 2004 2005 2006 2007 2008 2009
Total revision from reservations

0.0

0.0

0.0

0.0

0.2

0.3

-0.1

-0.4

Table 2 provides a breakdown of revisions to GNI (ESA95 Based) estimates for the years
2010-2013 by those caused by (a) GNI reservations, (b) changes to methods and sources
(excl. ESA2010 implementation) and (c) other routine (current) revisions.
Table 2: Revisions to Dutch GNI (ESA95 Based) for 2010-2013
(As percentage of GNI (ESA95 based) from the 2014 Questionnaire)

Total revision to GNI
'of which':
(a) Total revision caused by GNI reservations
(b) Total revision caused by changes in methods
and sources (excl. ESA2010 implementation)

2010 2011 2012 2013
0.2
1.8
1.5
3.0
-0.1
0.2

0.1
1.7

0.3
0

0.2
0

(c) Total revision caused by routine (current)
revisions

0

0

1.1

2.8

(d) ESA2010 to ESA95 Transition items

0

0

0.1

0.1

(a) Revised balance of payments statistics led to new information in relation to transversal
reservation I (cross border property income flows). In relation to this particular reservation,
updated estimates were introduced in all the reported GNI estimates (2010-2014).
(b) Revisions for 2010 and 2011 resulted from revised balance of payments statistics (the
introduction of BPM6) as released on 25 November 2014, other than already accounted for
under (a).
(c) For 2012 and 2013 revisions include the routine (current) revision of GDP and the balance
of property income (incorporation of the revised balance of payments statistics).
(d) Regarding the ESA95-ESA2010 transition items, small revisions to the 2011 were made
for item 1a: R&D created by a market producer. Other transition items remained unchanged.
For 2012 and 2013, routine (current) revisions have been made to several transition items..

3

Table 3 provides an overview of the total impact of the implementation of ESA2010
methodology on the GNI estimates.
Table 3: Total impact of ESA2010 Implementation on “country’s” GNI (ESA95 based) for 2010-2013
(As percentage of ESA95 GNI (incl. the allocation of FISIM) from the 2014 Questionnaire)

2010 2011 2012 2013
Total impact of ESA2010 implementation

1.9

1.8

2.0

2.1

1.1 Major changes and improvements to sources and methods of national
accounts
From September 2014 onwards, all member states of the European Union (EU) are obliged to
deliver national accounts (NA) data in conformity with the European System of Accounts
2010 (ESA2010). In the Netherlands at the same time a benchmark revision was carried out
leading to the incorporation of new sources and methods which caused significant upward
level shifts in GNI as reported in the September 2014 dataset. For the September 2015 dataset,
two kinds of revisions are relevant. First, the routine revisions originating from gradual
increasing availability of annual data sources which are used in estimating semi-final (y-1)
and final estimates (y-2). Second, additional revisions were made in response to
improvements in sources and methods underlying the property income transactions.
On 25 November 2014 the Dutch Central Bank (DNB) for the first time published balance of
payments estimates according to BPM6. As the guidelines for the national accounts and the
balance of payments are fully harmonized, it was expected that similar transactions in the NA
and BoP have (more or less) similar values. However, substantial divergences in property
income flows from and to the rest of the world appeared. This was unexpected as many efforts
have been undertaken in the recent past to harmonise the property income flows between the
balance of payments and the national accounts, particularly at the level of the most complex
and internationally operating enterprises.
Given the importance of harmonised macroeconomic statistics, and harmonised (components
of) gross national income (including the balance of property income), in the first months of
2015 Statistics Netherlands (CBS) and DNB carried out an intensive and joint investigation in
order to overcome the discrepancies in the estimates of property income which appeared to be
particularly large for the years from 2011 onwards. This led to adjusments of both BoP and
NA data. For further details, see paragraph 3.3 and Part 4.
This harmonisation of property income estimates also affected transversal reservation I: Cross
border property income, more specifically property income related to foreign and domestic
investment funds. Only for this particular transaction, revisions have been made starting from
2006 onwards since the newly obtained information from DNB on this item is considered of
higher quality compared to previously reported estimates. For further details, see paragraph
3.3, and Part 4.

4

1.2 Changes in the revision policy and timetable for finalising the
estimates
According to the regular revision policy and timetable, national accounts data on supply and
use and sector accounts for 2013, 2014 (provisional figures) and 2012 (final estimates) were
published on the 24th of June 2015 in StatLine, the CBS electronic database. At the same
time, annual time series 1995-2010 were published in StatLine as well.
On the 13th of July 2015 the ‘Nationale rekeningen 2014’ (National Accounts 2014) was
published on the CBS website (www.cbs.nl PDF format). The English edition ‘National
accounts of the Netherlands 2014’ was released on 31 August 2015.
CBS is currently in the process of investigating a new revision policy and timetable. This new
revision policy entails a reduction of the number of annual estimates from three to two. As a
consequence, the estimate for y-2 (e.g. reporting year 2014 in the GNIQ2016) will no longer
be a semi-final estimate, but a final estimate which will not be further revised until the next
benchmark or methodological revision. An important precondition is that Structural Business
Statistics (SBS) become available sooner in order to be incorporated in the estimates of y-2
instead of y-3. A final decision on this new strategy will be made in spring 2016.

1.3 Results of any investigations on the quality of GNI and its components
Revision analysis

For some time now, revisions of Dutch macro-economic estimates, from flash to final
estimates, have been mapped systematically. Both changes in size and sign are systematically
reviewed. The aim of this exercise is to gain a better understanding of the main causes of the
revisions and to improve future (provisional) estimates. Although the analysis of revisions
mainly relates to volume data such as economic growth, it is expected that also current price
estimates will benefit from this research. The successive estimates of Dutch national accounts
variables are presented on the CBS website (www.cbs.nl) under: Thema’s - Macro-economie
- Methoden - Bijstellingen (in Dutch only).
Process tables

From 2003 onwards annual process tables have been compiled for the final estimates of the
national accounts. However, the tables for 2003 - 2006 were not found satisfactory for various
reasons. This led to a new set up of a process tables for the reference year 2007. The results of
the table are presented in two papers:
‘Further elaboration of the use of the concept of Process Tables in National Accounts
practice’ (part 1 of DG-Eurostat Grant agreement 2008, Theme 01, The Improvement of the
quality of National Accounts No. 20101.2008.002-2008.190).
‘Further elaboration of Process Tables and the use of Process Tables as an instrument to
improve National Accounts compilation’ (part 1 of DG-Eurostat Grant agreement 2009,
Theme 01, The improvement of the quality of National Accounts No. 20101.2009.0012009.173).

5

As part of the GNI inventory 2010, process tables will be produced for the final annual
estimates of the supply and use tables including most industries (excluding health care and
general government) and final expenditure categories (excluding general government final
consumption expenditure). These process tables systematically describe the compilation
process of national accounts figures from sources to final estimates.
In addition, annual process tables for supply and use tables are made for final estimates from
the 2010 benchmark revision onwards. Recently a project was launched to embed process
tables also in the compilation process of the institutional sector accounts. This should further
enhance the quality and transparency of the estimates.
Improving the recording of transactions with the Rest of the World

As a result of the of the joint investigation as conducted by CBS and DNB at the beginning of
2015, see section 1.1, harmonisation of the property income in National Accounts and
Balance of Payments has taken a significant step forwards. For further details, see paragraph
3.3 and Part 4.
A second point of attention is the significant routine revisions of first (y-1) to subsequent
second year estimates (y-2). It appears the Balance of Payments frequently show substantive
revisions between (sum of four) quarterly reports and the first annual reports as non-response
rates in quarterly source data as available in March are usually high. At that point in time
several companies are not able to report annual data on all required data items, particularly
those addressing transactions from and to the rest of the world. A second Balance of
Payments release in June contains a number of annual reportings, replacing the quarterly
figures, which improves data quality. In close cooperation with DNB, CBS solved the time
constraints which allow for the introduction of this second Balance of Payments release into
the preliminary annual GNI estimate of 2014. Expectedly this will reduce future revisions of
the reporting year 2014 (and subsequent) preliminary annual estimates.

1.4 Description of developments in major sources
With the 2010 benchmark revision, level estimates of gross national income are up to date.
The revised estimates keep track of all recent developments in major data sources such as
VAT and employment register data. For more information on the sources and methods used,
reference is made to the GNI Quality report 20141, a publication on the 2010 benchmark
revision2 and the GNI inventory 2015 (forthcoming).
In 2014 a joined CBS-DNB project was started aiming at a full integration of the national
accounts and balance of payments in 2017, which will change future compilation methods for
GNI. This project includes, among other things, a fully harmonised data collection
framework, a common revision and publication policy including the back-casting of time

1
2

From 2014 onwards, CBS published the GNI quality report on its website (only in Dutch).
The publication is available on the website in English and Dutch

6

series. One important achievement is that differences between the national accounts and
balance of payment will cease to exist.

Part 2: Changes to sources and methods for the final estimates
This section should explain changes in sources and methods compared to the ESA2010 GNI
Inventory. As a new verification cycle has just started, based on new GNI inventories, no
information is reported in this part 2 the 2015 Quality Report.

7

Part 3: Revisions to years 2010 to 2013
Part 3 should explain the main revisions to GNI for the “open” years, as given in table R1b –
of the 2015 GNI Questionnaire. Revision items which significantly contribute to the overall
revision of GNI are briefly explained.
Table 4 provides a breakdown of revisions to 2010-2013 estimates in millions of euros.
Table 4: Revisions to Dutch GNI (ESA95 Based) for 2010-2013
(Million euros)

GNIQ 2015 (ESA95 based)
Total revision to GNI (a)+(b)+(c)-(d)
'of which':
(a) Total revision caused by GNI reservations
(b) Total revision caused by changes in methods and
sources (excl. ESA2010 implementation)
(c) Total revision caused by routine (current) revisions
'of which':
GDP
(as percentage of GNIQ2014)
Balance of property income
(as percentage of GNIQ2014)
(d) ESA2010 to ESA95 Transition items
GNIQ 2014 (ESA95 based)

3.1

2010

2011

2012

2013

624794

643017

645752

650501

1122

11189

9505

18953

-346

471

2208

1211

1468

10571

0

0

0

0

7706

18261

0

0

0

0

0

147

4520
(0.7)
3186
(0.5)
409

8006
(1.3)
10255
(1.6)
519

623672

631828

636247

631548

Routine (current) revisions

According to the national accounts revision policy of the CBS, figures for the years y-1 and y2 are provisional and figures for the year y-3 are final (apart from benchmark revisions which
are carried out periodically every 5 years). Therefore, routine (current) revisions only occur
for 2012 and 2013 estimates.

Revisions of 2012

For 2012 GDP in current prices is up by 0.7 per cent3. The revised estimate shows that Dutch
economic growth in 2012 was less negative than earlier estimates. The Dutch economy did
not contract by 1.6 per cent but by 1.1 per cent. The upward adjustment both in current prices
and in volume terms is among others due to new Structural Business Statistics about the ITindustry and wholesale and retail trade, which shows that these industries performed better
3

As percentage of GNI (ESA95 based) from the 2014 Questionnaire

8

that assumed earlier. The increase in current prices is furthermore due to new annual
information from the SBS on the mining industry and annual reports on the banking branch.
Since the output volume for these industries is not obtained by deflating current prices but
instead is based on separate data sources, there is no upward adjustment in volume terms for
these industries.
The balance of property income was upwardly adjusted by 0.5 per cent. This adjustment is
mainly due to newly obtained information from DNB and the further harmonisation of the
national accounts (and excludes the revision related to Transversal issue I).
Total routine (current) revision of GNI 2012 is 1.5 per cent upward.
Revisions of 2013

For 2013 GDP in current prices is adjusted upward by 1.3 per cent4. For the largest part (0.8
percentage point), this is caused by the upward revision of the 2012 estimate. As preliminary
estimates of GDP are made by extrapolating level estimates of the most recent final estimates
applying growth rates, an increase of GDP in 2012 leads to a corresponding increase of GDP
in 2013. The remainder of the upward revision in mainly caused by new information on
general government, subsidised education, health care and insurance services. These
industries also account for the upward revision of GDP growth. GDP growth is revised
upwards from -0.7 per cent to -0.5 per cent.
The balance of property income was upwardly adjusted by 1.6 per cent. This adjustment is
mainly due to newly obtained information from DNB and the further harmonisation of the
national accounts (and excludes the revision related to Transversal issue I).
The total upward routine (current) revision of GNI 2013 equals 2.8 per cent.

3.2

Revisions related to the work on reservations

All improvements from the work on reservations is included in the GNI QA figures from
2010 onwards. This was also the case in the GNIQ2014. However, revisions related to work
on reservations is downwards for 2010 (-0.1) and upwards for 2011, 2012 and 2013 (0.1, 0.3
and 0.2 respectively). As already mentioned, the further harmonisation of the national
accounts and the balance of payments had an effect on transversal reservation I: the recording
of cross border property income in relation to foreign and domestic investment funds. Table 5
presents the details on the revisions related to the work on reservations for 2010-2013.

4

As percentage of GNI (ESA95 based) from the 2014 Questionnaire

9

Table 5: Revisions related to the work on reservations
(Million euro)

(a)

(b)

(a) + (b)
(c)

(d)

(c) +(d)
(a)+(b)(c)-(d)

Dividends (D.4431) payable by foreign
investment funds (S.2) to Dutch
shareholders
Retained earnings (D.4432) from foreign
investment funds allocated the Dutch
shareholders
Total received
Dividends (D.4431) receivable by the rest
of the world (S.2) from Dutch investment
funds (S.124)
Retained earnings (D.4432) by the rest of
the world (S.2) from Dutch investment
funds (S.124)
Total Paid
Balance S.1
GNIQ2014 (ESA95 based)
Revisions as % GNI (GNIQ2014)

2010
-882

2011
-1576

2012
-345

2013
-638

407

1890

2626

1859

-475
-210

314
-234

2281
-40

1221
-70

81

77

113

80

-129

-157

73

10

-346

471

2208

1211

623672
-0.1%

631828
0.1%

636247
0.3%

631548
0.2%

Cross border flows of dividends and reinvested earnings of Dutch mutual funds to foreign
investors and vice versa.
From now on CBS and DNB mutually agreed using for this particular item the estimate based
on information obtained from the Centralised Securities DataBase (CSDB). This source leads
to higher quality estimates compared to the previously used sources.
As these cross border flows relate to transversal reservation I (cross border property income
flows), revisions were made from 2006 onwards. (For details 2006-2010, see Part 4).

3.3

Other revisions due to changes in methods and sources

Recently, the processing of source statistics in the national accounts and balance of payments
was harmonised in several ways. Focus point of this harmonisation was aligning the balance
of property income in both statistics. For example, much effort was put in a common method
for measuring the cross border flows of dividends and reinvested earnings in relation to Dutch
non-financial corporations and captive financial institutions. CBS and DNB agreed to a
number of directives which overcome differences arising from two parallel data sources:
•

Statistics on the Finance of corporations (Statistiek Financiën Ondernemingen, SFO)

10

•

Cross border flows of non-financial corporations (Directe RApportage
grensoverschrijdende stromen van niet-financiële vennootschappen, DRA)

For the largest companies both data sources were compared on a respondent level basis.
Those companies reporting substantive differences in property income receipts and payments
were further examined based on annual business reports or direct contracts with company
representatives. For those companies reporting substantively diverging results, a common
decision was taken about their recording in the Balance of Payments and in the National
Accounts.
The common research of CBS and DNB also addressed the recording of cross-border property
income in relation to captive financial institutions. Several captive financial institutions
appear to report payments of profit originating from both domestic and foreign affiliated nonfinancial corporations to foreign mother companies. Particularly the recording in the national
accounts and balance of payments of reinvested earnings on foreign direct investment (D.43)
in relation to these domestic affiliated non-financial corporations was further aligned.5
Table 6 presents the 2010 and 2011 revisions as a result of the realignment of cross border
property income flows.
Table 6: Revisions due to changes in method and sources, 2010-2011
(millions of euros)

code
ESA
2010
25 Property income received from the rest of the
world
of ‘which'
Non-financial corporations

D4

26 Property income paid to the rest of the world
of ‘which'
Non-financial corporations

D4

25-26 Balance of property income
(as percentage of GNIQ2014)

2010

2011

852

0

4605
-616

0
D4

6036

-4859
-3438

1468
(0.2)

10895
(1.7)

As a second point, Statistics Netherlands states income flows associated with Euro bank notes
are recorded under interest. Since this was also the case prior to GNIQ 2014 we are not
reporting any revisions due to the new DMES decision and that the Netherlands is in line with
this decision. In the financial accounts, under both ESA95, assets are registered for the
5

On this topic CBS has consulted Eurostat. As a result the issue will be discussed in the November 2015
Eurostat National Accounts Working Party. In hindsight, the impact of this issue is rather limited, e.g. 118 mln
euro in 2011.

11

National Central Bank (NCB, S.121 ) against the European Central Bank (ECB, S.2) as short
term loans (AF.41) With the benchmark revision, assets are allocated from short term loans to
Other deposits (AF.29).
In the current account, under both ESA95 and ESA2010, the interest received by the NCB
from the ECB is registered by using the annual report of the NCB as our source. The table
below shows the values of interest received by the NCB for the years 2011-2012-2013.

Assets NCB against ECB

2011

2012

2013

1212

1582

716

Source: annual report National Central Bank

12

3.4

Revisions due to the transition from ESA 95 to ESA 2010

The ESA95 to ESA2010 transition items were revised affecting GNI according to ES95 for
the reference year 2011 and onwards. Table 7 presents an overview of revisions in
comparison to the GNI questionnaire 2015.
Table 7: Revisions of ESA95 to ESA2010 transition items
(millions of euros)

2010
Total impact of differences in definitions between
ESA2010 and ESA95 on GNI
(ESA2010 minus ESA95)
Of which:
(1a) R&D created by a market producer
(1b) R&D created by a non-market producer
(2) Valuation of output for own final use for market producers
(3) Non-life insurance - Output, claims due to catastrophes,
and reinsurance
(4) Weapon systems in government recognised as capital assets
(5) Decommissioning costs for large capital assets
(6) Government, public and private sector classification
(7) Small tools
(8) VAT-based third EU own resource
(9) Index-linked debt instruments
(10) Central Bank - allocation of output
(11) Land improvements recognised as a separate asset

2011

2012 2013

0

147

409

519

0
0
0
0

147
0
0
0

293
13
27
70

292
15
33
172

0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0

6
0
0
0
0
0
0
0
0

7
0
0
0
0
0
0
0
0

An updated description of the methodology on the transition items can be found below.
1. R&D
In the GNI-questionnaire 2014 the estimates of R&D created by a market producer
erroneously referred to constant price data for the years 2011 – 2013. In addition the
2012 and 2013 data are updated in relation to regular revisions.
2. Valuation of output for own final use by market producers
The estimate of the mark-up on output for own final use (mainly software) by market
producers is estimated as 5 per cent of own account GFCF on software.
3. Non-life insurance output, claims due to catastrophes and re-insurance
The data for 2012 and 2013 are updated in the regular production cycle of the NA.
4. Weapon systems in government recognised as capital assets
The impact on GDP equals consumption of fixed capital which is estimated using the
PIM-method. The data for 2012 and 2013 are updated in the regular production cycle
of the NA.
5. Decommissioning costs for large capital assets
No changes were made in the benchmark revision of the Dutch NA.
6. Government, public and private sector classification

13

The delineation of government was subject to research in the benchmark revision of
the Dutch NA. However the changes made concern both ESA and non-ESA shifts and
therefore it is not possible to quantify the impact of the implementation of ESA2010.
7. Small tools
No changes were made in the benchmark revision of the Dutch NA.
8. VAT-based third EU own resource
The own resources decision 2014 – 2020 sets the percentage to be applied to the VATbase to 0.3 per cent (was 0.1 per cent in the 2007 -2013 decision). For the Netherlands
(among others) there will be an exception and a percentage of 0.15 per cent will be
applicable. However this rebate as part of the new GNI regulation is not ratified yet
and therefore not accounted for in the figures of table 2 - 2015 (NL). This explains the
large increase of the amount of the VAT-based third EU own resource.
9. Index-linked debt instruments
No changes were made in the benchmark revision of the Dutch NA.
10. Central Bank - allocation of output
10 per cent of the concerning output (2010: 5 mln. euros) is allocated to export of
services.
11. Land improvements recognised as a separate asset
No changes were made in the benchmark revision of the Dutch NA, because land
improvement was already recorded in the Dutch national accounts as GFCF under
ESA1995.

14

Part 4: Revisions related to GNI reservations (2002-2010)
Table 8 summarises the revisions made in relation to transversal reservation I (cross border
property income flows) for 2006-2010.
Table 8: revisions related to GNI reservations

(a)

(b)

(a) + (b)
(c)

(d)

(c) +(d)
(a)+(b)
-(c)-(d)

Dividends (D.4431) payable by foreign
investment funds (s.2) to Dutch
shareholders
Retained earnings (D.4432) from foreign
investment funds allocated the Dutch
shareholders
Total received
Dividends (D.4431) receivable by the rest
of the world (s.2) from Dutch investment
funds (S.124)
Retained earnings (D.4432) by the rest of
the world (s.2) from Dutch investment
funds (s.124)
Total Paid
Balance S.1
GNI (GNIQ 2014)
Revisions as % GNI (GNIQ2014)

2006
-201

2007
-219

2008
-2180

2009
-2520

2010
-882

1036

1958

1597

617

407

835
-35

1739
37

-583
100

-1903
17

-475
-210

-3

11

-12

85

81

-38

48

88

102

-129

873

1691

-671

-2005

-346

549371 574573 575413 556838 623672
0.2%
0.3% -0.1% -0.4% -0.1%

15