Revision policy of the balance of payments

Current account

Publication and revision policy for the current account of the balance of payments is based on Harmonised European Revision Policy (HERP) agreed by "Committee on Monetary, Financial and Balance of Payments Statistics (CMFB) in 2012.

Balance of payments results are published on a monthly, quarterly and annual basis. The publication of the first results follows a predefined schedule.

The mission of the CMFB is to assist the EU Commission in the elaboration and implementation of the work program concerning monetary, financial statistics and for the balance of payments. CMFB is a forum to ease coordination between representatives from European central banks, national statistical institutes, European Central Bank and Eurostat.

1^st publication of results

Revision of monthly and quarterly results

Revision of monthly and quarterly results

Revision of annual results

Revision of annual results

Routine revision and benchmark revision

The HERP distinguish between two types of revisions.

• the routine revision
• the benchmark revision

A routine revision spans over a period of the four most recent reference years, namely A-1, A-2, A-3 et A-4. When routine revisions are performed, data sources and calculation methods are kept unchanged to avoid break in statistical series. Exceptions are sometimes necessary for instance when a data source is no longer available and needs to be replaced by a new data source, in case of a late discovery of an error in a calculation method and other minor changes not leading to significant break in statistical series. The avoidance of break in statistical series is the guiding principle when selecting changes to introduce for a routine revision.

While a routine revision spans over four reference years, a benchmark revision spans over of longer period.  No fixed rule exists for the depth of a benchmark revision in HERP. Currently benchmark revisions start with the reference year 2012. A benchmark revision is the moment for integrating changes in data sources and calculation methods, which would have caused break in statistical series during a routine revision. When introduced for a benchmark revision, these changes are applied to the whole period covered by the benchmark revision, avoiding any break in statistical series. A benchmark revision is as well the moment for making changes resulting from the introduction of an update of the methodological reference manuals like the Balance of payments manual. Such an update may require new, deletion or updating of calculation methods and/or data sources. Results from a benchmark revision are in principle introduced for the 13^th of September. With the HERP, European Union Member States have committed to perform benchmark revision for their macroeconomic statistics at least every five year.

For the balance of payments, no strict separation is currently done between routine and benchmark revision. All reference years starting from 2012 may be revised for September. This practice is not in contradiction with HERP, which allows a longer depth of revision in September each year. Benchmark revisions should be performed at minimum every five years. However, in practice, revisions are only applied to the most recent years as there are no new elements to introduce for reference years more distant in time. Elements requiring a longer depth of revision are rather exceptional in the context of the balance of payments. Recently the need to assure a better consistency with national accounts results lead to a revision starting with reference year 2012. An update of the reference methodology (Balance of payments Manual) is as well an event requiring a longer depth of revision as calculation methods needs to be added, deleted or modified over the whole period to avoid break in statistical series.

Foreign direct investment

Net annual income on foreign direct investment of Luxembourg and the net year-ending foreign direct investment position of Luxembourg are published for the 30^th September of year A. Revised reference period may cover 2012 until reference year A-1. However, in practice, revisions are only applied to the most recent years as there are no new elements to introduce for reference years more distant in time. Results for reference year A-1 are released for the first time on the 30^th September of year A and the prior reference years are revised for this deadline.