National Accounts
The system of national accounts is a set of internationally agreed unified recommendations regarding the measurement of economic activity according to strict accounting methods based on economic principles.
Chapter One: National Accounts Statistics
Classification of Institutional Units
It includes five basic sectors, in addition to the outside world, and these sectors are:
1) The non-financial corporations sector.
2) The financial corporations sector.
3) General government sector.
4) Household sector.
5) The sector of non-profit institutions serving households
Chapter One: National Accounts Statistics
System Sector:
Chapter One: National Accounts Statistics
Non-Financial Projects
This sector includes the resident shareholding and quasi-shareholding projects (organizational units), including foreign projects that operate in all economic activities except for financial activities (banks, insurance, and auxiliary financial services). The system recommends dividing this main sector into sub-sectors: Non-financial public projects, national non-financial private projects, and non-financial foreign (subject to foreign control) projects.
Chapter One: National Accounts Statistics
Financial Projects
Financial projects are the resident corporations and quasi – corporations that work mainly in financial intermediation or in auxiliary financial activities that closely related to financial intermediation, and it includes sub-sectors of the financial corporation’s sector, including the following:
Chapter One: National Accounts Statistics
Central Bank
The public financial institution represents the monetary authority, i.e., issues banknotes, sometimes coins, and maintains all or part of its cash reserves. The central bank also has obligations (liabilities) in deposits on-demand or reserve deposits for other institutions that accept deposits. The Central Bank often keep government deposits.
Chapter One: National Accounts Statistics
Other Depository Corporations
Other depository corporations are resident financial corporations and quasi – corporations except for Central Bank, where their main activity is financial intermediation. Moreover, other depository corporations have obligations in the form of deposits or financial instruments.
Chapter One: National Accounts Statistics
Financial Intermediaries except for Insurance Corporations and Pension Funds
Financial intermediaries except for insurance corporations and pension funds consist of all the resident corporations and quasi – corporations mainly engaged in financial intermediation, except depository corporations, insurance corporations, and pension funds, which raise funds from the financial markets, but not in the form of deposits, and use them to own other types of financial assets and some of the corporations that operate in financing investments or capital formation, such as corporations engaged in financial leasing, installment sales corporations, and other corporations engaged in providing personal finance or consumer credit.
Chapter One: National Accounts Statistics
Financial Auxiliaries
Financial auxiliaries consist of all resident corporations and quasi–corporations mainly engaged in financial intermediation. Still, they do not perform the role of mediator by themselves, such as stock brokerage corporations, loan brokers, insurance brokers, and securities offering corporations. They also include corporations whose function is to endorse bills of exchange and similar instruments to be deducted or refinanced by financial corporations.
Chapter One: National Accounts Statistics
Insurance Corporations and Pension Funds
Insurance corporations include all the units that practice all types of life insurance and non-life insurance, such as fire, marine insurance, accidents, health, financial commitment and injuries, fidelity insurance, insurance clients and brokers, and institutions that serve insurance men and advisors for holders of insurance contracts and documents. Pension funds are those established independently or separately from the units established by the organization for them. These funds have their assets, liabilities, and transactions. These funds are established to provide benefits upon retirement to specific groups of workers. These funds may be managed or organized by the private employer or the private employer and the workers jointly. Both employers and workers participate in these funds regularly. These funds do not include any retirement arrangements for workers in private or public units, which do not have a separate and regulated fund or any arrangements organized by the employer, where the reserves of the fund have been added to the reserves of the employer or invested in securities issued by the employer. As an exception to this condition, the separate pension funds fall under these funds, which belong to government workers, even if most of its money is invested in government-issued securities.
Chapter One: National Accounts Statistics
General Government Sector
The general government sector includes all the governmental units, legal units established by political means, and legislative, executive, or judicial powers in a specific region. These units' main function is to provide goods and services to the community or provide them to households for free or at a nominal price. These goods and services are financed from taxes and other incomes collected by the government. The government also redistributes income and wealth through transfers, and these units operate in the field of non-market production.
Chapter One: National Accounts Statistics
Household Sector
The household is the organizational unit of this sector. The household is defined as (a group of individuals who share one livelihood, contribute together from their income or wealth to cover the cost of living, and consume some goods and services collectively such as housing, food ... Etc.). The domestic workers (to whom the household pays wages for their services) are not considered a part of this household even if they live with the household in one house, where the cost of living and eating are among the in-kind benefits paid to them, as the servants do not participate in the household’s financial income base. This implies that these servants' living costs are not included in the household's consumption they work for, and therefore they are treated as independent households. These units include the household members who live in institutions such as patients who stay in hospitals for a long time, those who live in shops and places of worship or prisons for a long time, as well as elderly individuals who live in shelter house where it is considered an institutional household
Chapter One: National Accounts Statistics
