Abstract
This data module of the Report on Observance of Standards and Codes (ROSC) for Mexico contains a brief assessment of dissemination practices relative to the Special Data Dissemination Standards (SDDS) of the IMF. The findings reveal that dissemination of data subject to the SDDS is in observance of all SDDS specifications, including data coverage, periodicity, timeliness, and the dissemination of advance data release calendars. In several cases, the periodicity and timeliness of these data exceed SDDS requirements.
I. Introduction
1. This data module of the Report on Observance of Standards and Codes (ROSC) contains (1) a brief assessment of Mexico’s practices with regard to the dissemination of macroeconomic statistics in comparison with the Special Data Dissemination Standards (SDDS) of the International Monetary Fund (IMF) (Section II); (2) a summary assessment of the quality of the main macroeconomic statistical datasets, based on the Data Quality Assessment Framework (DQAF) methodology prepared by the IMF Statistics Department staff (Section III)2, and (3) the main IMF staff recommendations for improving the quality of these data, based on the foregoing assessments (Section IV). The assessments have been prepared on the basis of information provided to the IMF by the Mexican authorities and official data in the public domain.
II. Data Dissemination Practices and the SDDS
2. The SDDS is a set of standards, based on best practices, established in March 1996, that guide IMF member countries in the dissemination of their economic and financial data.3 Mexico subscribed to the SDDS on August 13, 1996; Mexico’s data dissemination practices are therefore assessed against the SDDS.
3. Mexico observes the SDDS and complied on June 28, 2000 with the specifications on data coverage, periodicity, and timeliness, and on the dissemination of advance release calendars. The authorities started disseminating metadata on the Dissemination Standards Bulletin Board (DSBB) in September 1996. On April 24, 1997, they established a hyperlink between the national summary data page and the DSBB. Since April 17, 2000, they have been disseminating the Data Template on International Reserves and Foreign Currency Liquidity. On June 1, 2000, they established a hyperlink between this template and the DSBB.
4. Mexico provides access to the macroeconomic statistics covered by the SDDS in publications and on the websites of the National Institute of Statistics, Geography, and Information Technology (INEGI) (http://www.inegi.gob.mx/), the Bank of Mexico (BM) (http://www.banxico.org.mx/), and the Secretariat of Finance and Public Credit (SHCP) (http://www.shcp.gob.mx/index01.html).
Data dimension: coverage, periodicity, and timeliness
5. Mexico observes SDDS data dimension requirements in all categories, using flexibility options for the timeliness of data on the operations of general government and central government. Data periodicity and timeliness exceed the requirements of the Standard with respect to labor market data (employment, unemployment, and wages/income), the analytical accounts of the central bank, and international reserves. Timeliness requirements are also exceeded with respect to national accounts, the consumer price index, the producer price index, central government debt, the analytical accounts of the banking system, the balance of payments, and the trade balance.
Access dimension
6. Mexico meets the SDDS requirements for public access to data. Advance release calendars, in observance of the SDDS requirements, are published in hardcopy or on the website of the agency responsible for disseminating the information. Dissemination dates are also shown on the DSBB three months in advance. Data are disseminated simultaneously to all interested parties, generally on the websites of the pertinent institutions.
integrity dimension
7. The laws, regulations, and decrees governing the compilation and dissemination of official statistics in Mexico are available to the public—in printed and electronic form—in Spanish and in English. They provide a normative framework that supports the integrity of the statistical system.
8. The procedures for internal access to the data prior to their release are posted on the DSBB for the pertinent data categories. The government does not have internal access to the data before their dissemination in any of the categories covered by the SDDS. Data disseminated by the Mexican statistical agencies do not include ministerial commentaries except in the cases of central government operations and central government debt. In these two instances, ministerial commentaries are included in the Report on the Economic Situation, Public Finances, and Public Debt, which is submitted to the Congress once a quarter and published in the press on the same date.
Quality dimension
9. Summary methodological statements have been made available to the IMF for most data categories. Statements have not been made available for the labor market, interest rates, the stock exchange index, the balance of payments, or exchange rates. The eleven summary methodological statements received to date have been posted on the DSBB; nonetheless, some of them need updating.4 In addition, INEGI, the BM, and the SHCP disseminate methodological information in publications and on their websites.
10. The Mexican statistics-producing agencies also disseminate details on components of the statistics and additional data series for all of the data categories prescribed by the SDDS. This makes it possible to crosscheck data and verify the reasonableness of information reported.
Monitoring of data and access dimensions
11. In accordance with the third IMF Executive Board review of the SDDS, IMF staff began to monitor Mexico’s observance of the standards in July 2000.5 This monitoring includes an examination of dissemination dates indicated in advance release calendars and metadata to ensure that data are published as announced in the calendar and that they match the metadata posted on the DSBB. During the July 2000-December 2001 period, Mexico’s dissemination practices were in observance of SDDS requirements.6 In a few cases, and only in 2000, there were brief delays in data dissemination on the country page.
III. Summary Data Quality Assessment7
Prerequisites of data quality
This category of the DQAF identifies conditions within the agency in charge of producing statistics that have an impact on data quality. The elements within the category refer to the legal and institutional environment, resources, and quality awareness.
12. Mexico has a decentralized statistical system, even though a single federal agency is responsible for regulating and coordinating it. Generally speaking, the legal environment8 is adequate, although it suffers from considerable complexity. The legal framework establishes a National Statistical Service (SNE), national statistical systems, and arrangements for their organization and functioning. The agencies making up the national statistical systems are not identified specifically by name but are broadly defined in such a way that all statistical units of the public administration are included. The relevant law effectively empowers the SHCP9 to regulate and coordinate the integration of the various national statistical systems, the development of technical standards, and the collection, production, processing, and dissemination of statistical information.
13. All individuals and legal entities are required to provide statistical information requested by the units making up the national statistical systems, and significant penalties are provided for noncompliance. However, statistical units rarely impose such penalties, as they try to adopt measures conducive to voluntary reporting and provide technical assistance to reporting entities. At the same time, the latter are given assurances that any information they provide will be treated as confidential and used solely for statistical purposes. By law, civil servants who disclose confidential information are subject to penalties.
14. The legal framework establishes INEGI as a devolved body10 of the SHCP and gives it the authority to exercise the bulk of the powers granted to the SHCP as regards statistics. In particular, INEGI’s responsibilities include planning, promoting, and implementing the organization and development of an integrated national and economic accounting system. Under these arrangements, INEGI is responsible for compiling the national accounts. The law contains no specific provisions governing the appointment of the President of INEGI and does not specify the professional qualifications for the position, although in practice the Secretary of Finance and Public Credit makes the appointment. Information sharing with other statistical units by means of agreements and working meetings is sufficient to ensure the availability of the necessary information and leads to arrangements that avoid the duplication of requests for information from reporting entities. Nevertheless, the various committees created through the legal framework, some of which have not yet been formally established, could facilitate closer coordination of statistical initiatives.
15. INEGI has enough human, financial, and information technology resources for compiling the statistics for which it is responsible. The level of its staff’ academic training is deemed adequate, and all staff members participate in a continuous training program. Measures are taken constantly, including the review of work programs and processes and the comprehensive use of available information technology, to improve the efficiency of the use of resources. Through the introduction of the INEGI quality program, the creation of groups of associates, and their systematic and continuous efforts to assess both the quality of statistical output and new needs, INEGI demonstrates its quality awareness. INEGI maintains contacts with a large number of users but has no systematic consultative process, such as periodic user surveys, to seek views on the quality of its statistics.
16. The BM, which is an autonomous body, is in practice responsible for compiling and disseminating monetary, balance of payments, consumer price, and producer price statistics. It also disseminates other macroeconomic statistics compiled by other statistics-producing agencies. According to the legal framework,11 the BM is responsible for compiling and disseminating monetary and consumer price statistics, as well as—in coordination with the other authorities concerned—other economic and financial statistics. The BM is also responsible for collecting data and operating information systems as necessary for these purposes. There is no specific stipulation that the BM should prepare balance of payments and producer price statistics. The National Banking and securities commission (CNBV), which is also established as a devolved body, disseminates statistical data for all entities under its supervision. Through arrangements both formal (primarily the establishment of committees) and informal (working meetings), the BM has ensured sufficient information interchange with other public agencies and private entities.
17. The law makes it mandatory for financial institutions to report to the BM, the SHCP, and the CNBV any data on their operations that these agencies may request and spells out the penalties to be applied for noncompliance. There is continuous communication between the BM and reporting entities to solve noncompliance problems and the BM provides adequate support for the preparation of information returns. As regards the nonfinancial institutions and other reporting entities, provisions specifically giving the BM power to require information are outdated, and penalties prescribed are insufficient. This sometimes makes it difficult to collect essential data. The BM cannot rely on the more general provisions to fill this vacuum, as the Law on Statistical and Geographical Information does not apply to the statistical units of autonomous agencies. On the other hand, the BM has adopted measures to encourage the voluntary reporting of necessary information. Legal provisions, including both those specific to the BM and the more general ones, guarantee the confidentiality of undisclosed information provided to the BM by reporting entities, and the BM has taken appropriate steps to assure this confidentiality.
18. Overall, the BM has enough human, financial, and information technology resources to compile the statistics for which it is responsible, although the transition from the fourth to the fifth edition of the Balance of Payments Manual may require additional resources. Efforts are continuously being made to upgrade the computer systems used in the compilation and analysis of the statistics. Over time, measures taken have included the use of the latest technological advances, with a consequent reduction in the number of staff members assigned to these activities, and the efficiency of the use of resources has thus improved. The BM demonstrates quality awareness through regular reviews of methodologies and data collection, processing, and dissemination procedures and through the introduction of internal process auditing. In addition, the national consumer price index (NCPI) is certified under ISO 9001. However, the BM does not conduct regular user surveys for the purpose of obtaining comments on data quality.
19. The SHCP has a generally adequate legal framework12 for the compilation and dissemination of government finance and public debt statistics. The legal framework gives the SHCP the power to regulate and coordinate national statistics, maintain the official record of federal public debt, and disseminate public debt statistics. Although the SHCP is responsible for keeping the Congress regularly informed about government finances, the law should require the SHCP to disseminate government finance statistics to the public on a regular basis. The SHCP maintains a close relationship with INEGI, the BM, and other public agencies in terms of sharing statistical information. In particular, close coordination with the BM facilitates reconciliation of financing data. The SHCP, the BM, and the Secretariat of Auditing and Administrative Development have cooperated to establish an integrated information system that avoids duplication in the reporting of information by reporting entities. The law states that any information requested by the competent authority (in this case, the SHCP) must be provided by the reporting entities, and the confidentiality of the information in question is guaranteed by law.
20. The SHCP has allocated sufficient human, financial, and information technology resources for the compilation of government finance and public debt statistics. Greater efficiency of resource use can be attributed mainly to the increasing use of automated processes for the compilation of government finance statistics. The SHCP is fully aware of the importance of the quality of statistics, which is being promoted through the establishment of common accounting standards for all budgetary agencies, the verification of the consistency of primary information with the output, and the automation of the compilation and verification of statistics. Every two years, the SHCP conducts user surveys with a view to obtaining comments on quality.
Integrity
Integrity identifies features that support firm adherence to objectivity in the collection, compilation, and dissemination of statistics so as to maintain users’ confidence. Elements refer to the professionalism and ethical standards that should guide policies and practices, which should be reinforced by their transparency.
21. Professionalism is a guiding principle of INEGI, which has an integrated professionalization system that governs all aspects of its staff’ professional careers and impedes any improper external influence on the content or dissemination of statistics. The selection of data sources and methods is dictated purely by statistical considerations.
In addition, INEGI is authorized to make technical comments to any communications media that have made errors interpreting the data, and it exercises that authority. INEGI statistical policies and practices are transparent as INEGI informs the public of the terms and conditions under which statistics are compiled, does not allow any national authority access to statistics before their release, identifies itself as the statistics-producing agency, and announces in advance any substantial change in the methodology, statistical techniques, or source data used. As regards ethical standards, INEGI staff members are subject to the provisions of the Federal Law on the Administrative Responsibilities of Civil Servants and the INEGI code of General Terms of Employment. There is an induction process for new workers regarding their rights and duties.13
22. The BM is committed to maintaining the highest standards of professionalism. The legal framework governing the BM is adequate for ensuring the autonomy of staff members assigned to the compilation of statistics and professional competence is a key requirement in the hiring of employees and in staff promotions. The selection of data sources is dictated purely by statistical considerations, and staff members are encouraged to prepare studies on related topics. The BM holds periodic meetings with the communications media to avoid erroneous interpretations of statistics and, in major cases of improper interpretation, provides clarifications. In general, BM statistical policies and practices are transparent as the BM informs the public of the terms and conditions under which the statistics are compiled, does not give any national authority access to the statistics before their release, identifies itself as the statistics-producing agency, and announces in advance any substantial change in the methodology, statistical techniques, or source data used,14 except in the case of balance of payments statistics, changes in which are not disclosed in advance. As regards ethical standards, the Bank of Mexico Law states that BM staff members are subject to the provisions of the Federal Law on the Administrative Responsibilities of Civil Servants. In addition, the BM has drawn up General Terms of Employment, a copy of which is given to all new employees and which is posted on the BM’s Intranet site. It also sets up committees on specific topics, with the participation of staff from the various BM departments, to deal with cases of noncompliance with the rules.
23. In practice, the SHCP maintains a high level of professionalism, even though technical independence in the compilation of statistics is not backed by laws or specific safeguards. Government finance and public debt statistics are compiled on the basis of accounting records and administrative reports, drawn up in accordance with the relevant charts of accounts and budgetary standards. The selection of sources and methods is free of any political influence. The SHCP tries to avoid any incorrect interpretation of statistics by providing explanatory notes along with the statistics. In cases of improper interpretation, the SHCP issues clarifications through its Press Office or its technical staff. SHCP statistical policies and practices are transparent as the SHCP informs the public of the terms and conditions under which the statistics are compiled, does not allow any national authority access to the statistics before their release, identifies itself as the statistics-producing agency, and announces in advance, usually in the Draft Expenditure Budget of the Federation or in General Economic Policy Criteria, any substantial change in the methodology used. SHCP staff members are subject to the provisions of the Federal Law on the Administrative Responsibilities of Civil Servants; there is no other set of ethical standards for the SHCP.
Methodological soundness
Methodological soundness refers to the application of international standards, guidelines, and agreed practices. Application of such standards, which are specific to the dataset, is indicative of the soundness of the data and fosters international comparability. Elements refer to the basic building blocks of concepts and definitions, scope, classification and sectorization, and basis for recording.
24. Mexico’s national accounts are based on the conceptual framework of the System of National Accounts, 1993 (1993 SNA). The delimitation of the economy, production, and assets is generally in compliance with international recommendations, even though a few discrepancies, caused by the lack of relevant information of minor importance, may be noted. These discrepancies include nonrecording of a portion of production of manufactured goods for own-consumption, expenditure on research and development on own account, and production of computer software for own use. Also, historical monuments and original literary and artistic works are not recorded under assets. The classifications used in the national accounts for transactions, institutional sectors, economic activities, and consumption expenditure of households and general government are in conformity with international recommendations. The product classification used differs from that recommended internationally. In principle, all transactions are recorded at market prices and on an accrual basis.
25. The NCPI is based on internationally accepted concepts, practices, and standards. The index covers all urban areas with 20,000 or more inhabitants, all monetary consumption expenditure, the value of consumption of own-produced food, and imputed rents on owner-occupied dwellings. However, the classification system has not been adjusted to conform to the Classification of Individual Consumption by Purpose (COICOP). The overall structure of the national producer price index (NPPI) is based on internationally recommended concepts and definitions. However, international systems have not been adopted for the classification of economic activities and products. 15 The index covers all economic activities except for the financial services sector and production of processing industries under special customs regimes.
26. The structure and the classification of balance of payments statistics are in conformity with the methodological standards described in the fourth edition of the Balance of Payments Manual (BPM4).16 Considerable progress has been made in the transition to the methodology of the fifth edition of the Balance of Payments Manual (BPM5) and some BPM5 recommendations have already been implemented such as the incorporation of goods for processing into the goods account, the grouping of the income account headings in a single section, and the inclusion of the BM’s liabilities to the IMF in the other investment account. The recommendations yet to be implemented using the BPM5 methodology include a finer breakdown of services in the current account and the identification of capital transfers (implementation of which is impeded by lack of source data), the accrual-based recording of the payment of interest on public external debt, and the separate identification of the financial transactions of foreign branches of Mexican banks using the residency criterion. A finer breakdown of services and the identification of capital transfers will require the development of enhanced data sources.
27. The Data Template on International Reserves and Foreign Currency Liquidity is generally compiled in accordance with the Operational Guidelines for the Data Template on International Reserves and Foreign Currency Liquidity. In addition to what is required, information has been included in Sections V and VI on the forecast of short-term flows that affect the international reserves and the composition, by foreign currencies, of gross international reserves. However, Section II, on predetermined short-term drains, is limited to presenting the net flows derived from the memorandum section, which includes items not related to Section II, such as placements of bonds contracted by the government or the BM 17 and expected interest from investment of international reserves. Progress has also been made toward producing the international investment position.18
28. The methodology used to compile government finance statistics follows national concepts and definitions that are generally similar to the guidelines in A Manual on Government Finance Statistics, 1986 (GFSM 1986). The authorities will in due course assess the advisability and possible ways of migrating to the Government Finance Statistics Manual, 2001 (GFSM2001). Government finance statistics are compiled and disseminated for the federal government (budgetary central government), consolidated central government, general government, budgetary public sector, nonfinancial public sector, and public sector borrowing requirement. Government finance statistics for general government are provided only on request. Institutional coverage of consolidated central government differs from international guidelines in that decentralized agencies engaged in nonmarket activities are not included (these receive the bulk of their revenues from the federal government, which records as expenditure transfers and subsidies granted). This difference also affects the coverage of general government.
29. Revenues, expenditure, financing, and debt are classified in accordance with national criteria similar to those recommended in the GFSM 1986, but with significant presentational differences. Generally speaking, a link can be established between the national classifications and those in the GFSM 1986. The necessary information is available for compiling government finance statistics in accordance with international guidelines. Revenues, expenditure, and financing are shown on an amended cash basis, while debt is presented on a cash basis.
30. As regards monetary statistics, the monetary aggregates are compiled and disseminated, as are separate sectoral balance sheets for the BM, commercial banks, and development banks. These statistics are compiled, generally, in conformity with the methodology of the IMF’s Monetary and Financial Statistics Manual (MFSM), for instance with respect to the concept of residency, the identification of institutional sectors, the valuation of financial assets at market prices, use of accrual-basis accounting, and the presentation of assets and liabilities on a gross basis. Commercial banks and development banks make up the other depository corporations (ODC) subsector. However, some groups of corporations currently considered as nonbanks issue broad money liabilities and perform functions similar to those of the ODC19 according to the MFSM definition. Indeed, these instruments are already taken into account in the measurement of broad money.
31. Monetary statistics are reviewed periodically to ensure that the methodology used to compile them reflects changes arising in the structure of the financial sector and in financial instruments. Statistics are presented once a year—in the section on flow of funds in the Annual Report of the Bank of Mexico—within an analytical framework where assets and liabilities of the BM and the ODC (as a subsector) are clearly identified by financial instrument. Although it is possible, based on the information currently disseminated, for a user to construct a Depository Corporations Survey (DCS) that provides data for depository corporations’ claims on and liabilities to nonresidents and the resident sectors of the economy, dissemination of an analytical framework of this type would facilitate interpretation of monetary statistics.20
Accuracy and reliability
Accuracy and reliability identifies features that contribute to the goal that data portray reality. Elements refer to identified features of the source data, statistical techniques, and supporting assessments and validation.
32. The compilation of national accounts is supported by a broad database derived from a regular program of economic censuses conducted every five years, annual and monthly economic surveys, and various administrative data that ensure full coverage of economic activities. Although some of these surveys are deterministic, they are adequately representative. Sampling errors for assessing the reliability of probabilistic surveys are not calculated. The variables obtained from the annual surveys are sufficient for compiling the production accounts, although a finer breakdown of production costs would enhance the accuracy of estimates. Monthly economic surveys, for their part, lack information on intermediate consumption, which means that assumptions have to be used. There are valuation problems with the source data on imports by tariff items and some production activities reported in the manufacturing sector survey are valued at producer prices, including certain special taxes on products, so that adjustments are necessary to convert to basic prices.
33. The base year for the national accounts is 1993, for which complete supply-and-use tables are available. Although these tables are also compiled annually, there is no matrix of intermediate consumption. The annual calculations include production accounts at current prices and at constant prices (fixed base, 1993) for 364 activities. Estimates are generally obtained by extrapolating the values for the base year with value and volume indices to obtain estimates at current and constant prices, respectively. Estimates for intermediate consumption of the manufacturing sector at current prices are inconsistent with the assumption used of fixed input/output ratios at constant prices. The procedure adopted for calculating taxes on products at constant prices is inappropriate. In the calculation of GDP by expenditure, there is no direct measurement of changes in inventories available. The methodology used for compiling quarterly GDP estimates at current prices is inadequate, as the assumption of fixed input/output ratios at current prices is inappropriate. In addition, the prorating method used to align quarterly GDP estimates with annual figures introduces breaks in the series.
34. Statistical techniques used for compiling the NCPI accord with internationally accepted practices. In addition, a system is used to audit the price survey and the processing of data for index quality control. However, the index weights are based on the results of the 1989 National Survey of Urban Household Income and Expenditure (ENIGH), which was conducted during only one quarter of that year. The age of these weights exceeds the international recommendation of five to seven years.21 In addition, use of data on household consumption collected during only one quarter of the year could introduce seasonal biases in the weights. The NPPI is compiled in accordance with internationally accepted methods and procedures. A system is also used to audit the price survey and the processing of data for index quality control.
35. Balance of payments statistics are compiled with information received from an adequate mix of primary and secondary sources. In addition, there are specific procedures for improving the coverage, classification, and valuation of various accounts. In particular, these procedures include (1) coverage and valuation of the goods account, which complement the information received from customs; (2) coverage of the travel account, which provides reliable data; and (3) adjustments in the valuation of external public debt transactions that facilitate carrying them over at market prices to the balance of payments. Nevertheless, the financial transactions of foreign branches of Mexican banks in the balance of payments are not classified using the residency criterion as recommended in BPM5, although the monetary accounts are produced using this criterion. The source data are valued and the results are checked. However, revision studies and analyses are not performed regularly.
36. Adequate information sources are available for compilation of monthly and annual government finance statistics with the various coverages, including all institutions in the respective subsectors. Information is current and timely, except with respect to state and municipal governments. Budgetary and extrabudgetary charts of accounts are consistent with government finance statistics categories recommended in the GFSM 1986, but there is no automatic mechanism for directly deriving government finance statistics categories from budgetary accounts. Time of recording and valuation are generally consistent with the concepts in the GFSM 1986. Information in government finance statistics can be fully reconciled with information in the official annual accounts.
37. To check their accuracy, the principal sources of information on the federal public sector are cross-checked with other accounting and administrative documents. All government finance statistics are preliminary until the final revision is done with definitive audited information: this is indicated by including the word preliminary in the respective tables. If discrepancies are found later, corrections are made. Financing data in government finance statistics are reconciled every month with corresponding monetary data from the BM. Regular revision studies are made for government finance statistics. These are not disseminated but are used to improve the quality of government finance statistics.
38. With respect to monetary statistics, broad-based source data are available with sufficient breakdowns by sector and financial instrument to facilitate application of the methodology recommended in the MFSM. The sectoral balance sheet of the central bank is compiled on the basis of the accounting balance sheet of the BM. The sectoral balance sheet of ODC is based on the Accounting and Sectorization Report that ODC submit each month to the BM. Procedures for compiling source data and for checking and validating data are fully automated. These processes facilitate reporting by ODC and help ensure the quality of intermediate and final statistical products. Reliability of monetary statistics is under constant scrutiny by the BM and periodic revision studies are carried out. Despite constant communications between the BM and ODC, the failure of some ODC to submit the Accounting and Sectorization Report by the established deadline—within the first 10 business days of the month—impedes more timely dissemination (i.e., with a lag of less than 40 days) of the more detailed set of monthly monetary statistics.
Serviceability
Serviceability focuses on practical aspects of how well a dataset meets users’ needs. Elements refer to the extent to which data are relevant, produced and disseminated in a timely fashion with appropriate periodicity, are consistent internally and with other datasets, and follow a predictable revisions policy.
39. Although no surveys are carried out among users of national accounts statistics, frequent consultations occur at meetings with users from a wide range of public and private institutions. In addition, the scope of the statistics compiled and disseminated is extensive. Periodicity and timeliness of national accounts are in conformity with international standards. The statistical series is coherent internally and over time. Revisions policy and practice follow a regularly established schedule known to users.
40. No regular user consultation process has been established for the NCPI and NPPI series. However, frequent consultative meetings are held with analysts from the press, the government, the private business sector, and academic circles. Periodicity is monthly and twice monthly for the NCPI and monthly for the NPPI. Each index is disseminated within 10 days of the end of the reference period. Time series are produced and disseminated with a breakdown by geographical area and expenditure component for the NCPI and by industry and purpose for the NPPI. The two series are coherent over time and as regards the order and type of aggregation.
41. Mexico compiles and disseminates quarterly balance of payments statistics, the periodicity and timeliness of which meet SDDS requirements. Preliminary annual data are disseminated two months after the reference period, and in April of the same year in which the Annual Report of the Bank of Mexico is published with revised data. Statistics are coherent over time and among the various external sector accounts and can be reconciled with monetary and government finance statistics. There is full consistency with national accounts statistics. The international investment position is not yet available and there is therefore no reconciliation between such information and balance of payments flows.22 Although there is no formal revisions policy, revisions are made on a predictable timetable related to the timetable for the dissemination of quarterly balance of payments data. Users are not consulted actively or systematically; however, user requests are met while following strict confidentiality criteria. No formal procedure has been established for the dissemination of revision studies and analyses.
42. Government finance statistics follow the same time frame as that used in budget preparation and monitoring. The timeliness of data on operations of central government and general government does not meet SDDS requirements, whereas the timeliness of data on central government debt meets SDDS requirements. The periodicity of all these data is as required under the SDDS. Government finance statistics data on financing are consistent with monetary accounts and balance of payments; inconsistencies with national accounts arise only on account of differences in the basis of recording and coverage. The consistency between preliminary and final data is sufficient to warrant confident use of preliminary data in policy formulation and analysis. Analyses comparing preliminary with final data are not disseminated.
43. Consultations and meetings are held with users whenever there is a change of methodology for monetary statistics. However, the BM does not participate in user forums or engage in direct periodic consultations to assess the practical usefulness of the data. The BM is aware of innovations affecting financial markets and tries to incorporate relevant changes into the monetary statistics. The statistics are coherent internally and over time and can be reconciled with government finance and balance of payments statistics. Periodicity and timeliness of monetary statistics satisfy SDDS requirements. Data are disseminated in preliminary form in accordance with a calendar announced in advance to the public. Figures remain preliminary for two months and then become final. For internal purposes, studies are conducted on revisions and on consistency between preliminary and final data, but these studies are not disseminated.
Accessibility
Accessibility deals with the availability of information to users. Elements refer to the extent to which data and metadata are clear and easily available and the extent to which assistance to users is adequate to help them find and use the data.
44. National accounts statistics, regardless of their periodicity, are disseminated in a press release and simultaneously posted in full on the INEGI website. Presentation of the statistics in absolute values, indices, percentage distributions, and charts facilitates user understanding. Statistics are disseminated simultaneously to all users in accordance with a calendar announced in advance. Users also have access to metadata by Internet and in INEGI publications. In all publications and on the INEGI website, contact addresses are given for information on the statistics. INEGI has a catalogue of products and services that is updated every year.
45. The NCPI and the NPPI are disseminated, by press release and on the BM website, to all users simultaneously, in accordance with a calendar announced in advance. Monthly data are presented for both indices (plus twice-monthly data for the NCPI), broken down by major group, with tables, time-series charts, and a brief analysis. Detailed time series are available for the NCPI, starting with 1980 data, on the website. Also, NPPI data are disseminated in the same place, broken down by product, starting with 1981 data, and by service, starting with 1994 data. No contact addresses are given for information on the statistics.
46. Dissemination formats for balance of payments include statistical tables, notes on foreign trade, press releases, and the Annual Report of the Bank of Mexico, all found on the BM website. Information is disseminated with various levels of aggregation, and trends and salient points are analyzed separately in notes and bulletins. Data are sent simultaneously to all parties concerned on the date indicated in the release calendar. However, there are no methodological notes explaining the concepts, definitions, and classifications used in balance of payments statistics, and there is as yet no documentation on sources and statistical techniques used in compiling the main balance of payments components. The SHCP disseminates on its website metadata related to external public debt statistics.
47. The public is provided with a very large volume of information on government finance statistics. Formats used for presenting government finance statistics differ from the tables recommended by the GFSM 1986 but their content is similar. A link can generally be established between national classifications and those in the GFSM 1986 but the establishment of such a link requires detailed information not available to users. As a result, the current presentation of government finance statistics makes international comparisons difficult. Introduction of a few selected tables highlighting principal results and following the guidelines in the GFSM 1986 would facilitate general user understanding and international comparisons. Monthly, quarterly, and annual government finance statistics are disseminated through the SHCP website and other media. A data dissemination calendar is also released a year in advance on the SHCP website and in other media. The actual dissemination date usually coincides with the date announced.
48. Government finance statistics are disseminated simultaneously to all parties concerned without preferential treatment for any user. Three methodological notes are also disseminated on the SHCP website discussing concepts, sources, and methods. Also posted on the website and in other media are the name, telephone number, and e-mail address of the person who can be consulted regarding government finance statistics.
49. Presentation of monetary statistics is accompanied by tables and charts facilitating an accurate interpretation of the performance of the principal monetary aggregates. Statistics are disseminated simultaneously to all interested parties on the BM website, where recent data and time series with various levels of detail can also be consulted, although searching may be difficult because of the abundance of information and the complexity of the page.23 The BM website contains a brief description of the principal monetary variables but does not provide comprehensive documentation on the methodology currently used to compile monetary statistics.24 The BM website does not identify the name of a contact person or the BM unit that compiles monetary statistics; however, users can send their comments and requests through a general electronic mailbox established for this purpose. The BM also responds to special requests from users, provided that such requests do not involve confidential information.
Summary Data Quality Assessment
Summary Data Quality Assessment
| NA = Not applicable; 0 = Practice observed; LO = Practice largely observed; | ||||||
|---|---|---|---|---|---|---|
| LNO = Practice largely not observed; NO = Practice not observed. | ||||||
| National | Consumer | Producer | Balance of | Government | Monetary | |
| Accounts | Prices | Prices | Payments | Finance | Statistics | |
| Dimension/element | ||||||
| 0. Prerequisites | ||||||
| 01. Legal and institutional environment | LO | 0 | LO | LO | 0 | 0 |
| 0.2 Resources | 0 | 0 | 0 | 0 | 0 | 0 |
| 0.3 Quality awareness | 0 | 0 | 0 | 0 | 0 | 0 |
| 1. Integrity | ||||||
| 1.1 Professionalism | 0 | 0 | 0 | 0 | 0 | 0 |
| 1.2 Transparency | 0 | 0 | 0 | 0 | 0 | 0 |
| 1.3 Ethical standards | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. Methodological soundness | ||||||
| 2.1 Concepts and definitions | 0 | 0 | 0 | LO | LO | LO |
| 2.2 Scope | 0 | 0 | LO | LO | LNO | LO |
| 2.3 Classification/sectorization | LO | LNO | LNO | LO | LNO | 0 |
| 2.4 Basis for recording | 0 | 0 | 0 | LO | 0 | 0 |
| 3. Accuracy and reliability | ||||||
| 3.1 Source data | LO | LO | 0 | LO | 0 | LO |
| 3.2 Statistical techniques | LNO | LNO | 0 | 0 | 0 | 0 |
| 3.3 Assessment and validation of source data | 0 | 0 | 0 | 0 | 0 | 0 |
| 3.4 Assessment and validation of intermediate data | LO | 0 | 0 | 0 | 0 | 0 |
| 3.5 Revision studies | LO | LNO | LNO | LO | 0 | 0 |
| 4. Serviceability | ||||||
| 4.1 Relevance | 0 | LO | LO | LO | 0 | LO |
| 4.2 Timeliness and periodicity | 0 | 0 | 0 | 0 | LO | 0 |
| 4.3 Consistency | 0 | 0 | 0 | 0 | 0 | 0 |
| 4.4 Revision policy and practice | 0 | LNO | LNO | LO | LO | LO |
| 5. Accessibility | ||||||
| 5.1 Data accessibility | 0 | 0 | 0 | 0 | LO | 0 |
| 5.2 Metadata accessibility | 0 | 0 | 0 | LNO | 0 | LNO |
| 5.3 Assistance to users | 0 | LO | LO | LO | 0 | LO |
Summary Data Quality Assessment
| NA = Not applicable; 0 = Practice observed; LO = Practice largely observed; | ||||||
|---|---|---|---|---|---|---|
| LNO = Practice largely not observed; NO = Practice not observed. | ||||||
| National | Consumer | Producer | Balance of | Government | Monetary | |
| Accounts | Prices | Prices | Payments | Finance | Statistics | |
| Dimension/element | ||||||
| 0. Prerequisites | ||||||
| 01. Legal and institutional environment | LO | 0 | LO | LO | 0 | 0 |
| 0.2 Resources | 0 | 0 | 0 | 0 | 0 | 0 |
| 0.3 Quality awareness | 0 | 0 | 0 | 0 | 0 | 0 |
| 1. Integrity | ||||||
| 1.1 Professionalism | 0 | 0 | 0 | 0 | 0 | 0 |
| 1.2 Transparency | 0 | 0 | 0 | 0 | 0 | 0 |
| 1.3 Ethical standards | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. Methodological soundness | ||||||
| 2.1 Concepts and definitions | 0 | 0 | 0 | LO | LO | LO |
| 2.2 Scope | 0 | 0 | LO | LO | LNO | LO |
| 2.3 Classification/sectorization | LO | LNO | LNO | LO | LNO | 0 |
| 2.4 Basis for recording | 0 | 0 | 0 | LO | 0 | 0 |
| 3. Accuracy and reliability | ||||||
| 3.1 Source data | LO | LO | 0 | LO | 0 | LO |
| 3.2 Statistical techniques | LNO | LNO | 0 | 0 | 0 | 0 |
| 3.3 Assessment and validation of source data | 0 | 0 | 0 | 0 | 0 | 0 |
| 3.4 Assessment and validation of intermediate data | LO | 0 | 0 | 0 | 0 | 0 |
| 3.5 Revision studies | LO | LNO | LNO | LO | 0 | 0 |
| 4. Serviceability | ||||||
| 4.1 Relevance | 0 | LO | LO | LO | 0 | LO |
| 4.2 Timeliness and periodicity | 0 | 0 | 0 | 0 | LO | 0 |
| 4.3 Consistency | 0 | 0 | 0 | 0 | 0 | 0 |
| 4.4 Revision policy and practice | 0 | LNO | LNO | LO | LO | LO |
| 5. Accessibility | ||||||
| 5.1 Data accessibility | 0 | 0 | 0 | 0 | LO | 0 |
| 5.2 Metadata accessibility | 0 | 0 | 0 | LNO | 0 | LNO |
| 5.3 Assistance to users | 0 | LO | LO | LO | 0 | LO |
IV. Fund Staff Recommendations
General recommendations
Include in the relevant legislation a provision governing the appointment of the president of INEGI and specifying the professional qualifications for the position.
Legally authorize the BM to compile balance of payments and producer price statistics and to collect statistical information from the public and private sectors for these purposes.
Ensure that all the major statistical agencies are required, as well as authorized, to disseminate to the public macroeconomic statistics for which they are responsible.
Begin an active, systematic process of consulting users on the quality of macroeconomic statistics.
Establish procedures for informing users about data revision studies.
Ensure easy user access to the statistics and related metadata, including through publication of the name of a contact person.
As a minimum, disseminate on the statistical agencies’ sites the metadata posted on the DSBB.
National accounts
Introduce the central product classification (CPC).
Improve and broaden information obtained through monthly and annual economic surveys.
Request the processing of information already collected in manufacturing surveys on intermediate consumption by product.
Ascertain whether prices used by reporting entities in economic surveys to value the consumption of raw materials conform to valuation principles described in the 1993 SNA.
Assess the possibility of obtaining data on imports broken down by tariff item at c.i.f. prices.
Review the calculation of taxes on products at constant prices.
Extend the calculation of changes in inventories to include economic activities covered in surveys.
Use appropriate indicators for output and intermediate consumption to obtain the corresponding quarterly GDP estimates at current prices by economic activity and use a more appropriate method for benchmarking the quarterly estimates to annual data.
National consumer Price Index
Introduce the COICOP for the coding, classification, and dissemination of all data related to household consumption, for the NCPI and the ENIGH.
Ensure that the ENIGH is carried out for a full year to minimize biases owing to seasonality problems in index weights.
Establish a regular program for updating the basket of goods and services and their weights at least every five years.25
National Producer Price Index
Introduce internationally accepted classification systems for the coding, classification, and dissemination of data on economic activities and products.
Include processing industries under special customs regimes.
Balance of payments statistics
Complete the transition to the BPM5 methodology.
Compile the international investment position and reconcile it with the balance of payments.26
Make the Data Template on International Reserves and Foreign Currency Liquidity consistent with the format presented in the Operational Guidelines.
Use information available in monetary accounts on the financial transactions of foreign branches of Mexican banks classified according to the residency criterion.
To the extent possible, compile information on payments of interest on public external debt on an accrual basis.
Document with methodological notes the concepts, definitions, and classifications used in the balance of payments, as well as sources and statistical techniques used to compile balance of payments.
Government finance statistics
Routinely compile and disseminate statistics for the various levels of government (including consolidated central government and general government) following classification and presentation formats recommended in the GFSM 1986.
Consider adoption of the GFSM 2001 and develop a migration path for compiling and disseminating statistics in accordance with its guidelines.
Compile and disseminate more timely statistics on state and local governments.
Introduce a mechanism in the information system to facilitate derivation of government finance statistics directly and automatically from budgetary accounts.
Improve the timeliness of statistics on central government and general government operations with a view to complying with SDDS requirements. 27
Monetary statistics
Develop a work plan to complete adoption of the MFSM in the following areas: 28
Compile and disseminate, in the short term, the central bank survey (CBS), the other depository corporations (ODC) survey, and the depository corporations survey (DCS) based on the sectoral balance sheets that are currently produced.
Improve the coverage of the ODC subsector by including savings and loan associations, financial factoring enterprises, financial leasing firms, and credit unions.
Compile and publish the other financial corporations survey and the financial corporations survey.
Ensure compliance with deadlines established for submission of the Accounting and Sectorization Reports of the ODC.
Implement, as soon as possible, the metadata and methodologies module project.29
The mission comprised: Peter L. Joyce (Deputy Director, Statistics Department), Segismundo Fassler (Senior Economist, Real Sector Division), Antonio Galicia Escotto (Senior Economist, Balance of Payments Division II), Alberto Jiménez de Lucio (Senior Economist, Government Finance Division), Teresa Villacrés (Senior Economist, Financial Institutions Division I), Dale Smith (Consultant, Real Sector), and Mabel Hollstein (Administrative Assistant).
The SDDS focuses on the dissemination of information on the basis of which a user of statistics may assess the suitability of the data for a particular use; it does not directly assess the quality of the data. The ROSC, on the other hand, in addition to assessing data dissemination practices against the SDDS, assesses the quality of the data in detail using the DQAF, which draws heavily upon international best practices.
A detailed description of the SDDS can be found on the IMF’s Dissemination Standards Bulletin Board (DSBB) on the Internet at http://www.imf.org.
Following the visit of the mission, an additional three summary methodological statements were posted on the DSBB, making 14 in all.
Monitoring of the data dimension—data coverage, periodicity, and timeliness—and of advance release calendars in the access dimension has been under way since July 2000. For the other SDDS specifications, subscribing countries are asked to confirm on a quarterly basis that the description of their practices is accurate.
The same pattern was observed in 2002.
The staff assessment was supplemented by a survey of users of Mexican macroeconomic statistics undertaken to ascertain their views on selected aspects of the quality of the data.
Based on the Federal Public Administration Organic Law, the Statistical and Geographic Information Law (and pertinent Regulations), the Federal Law on the Administrative Responsibilities of Civil Servants, and the Internal Regulations of the Secretariat of Finance and Public Credit, as well as on subsequent amendments thereof.
Previously the Secretariat of Programming and Budget.
Órgano desconcentrado. A devolved body has technical but not budgetary autonomy. At the time of the visit of the mission, plans were being considered for converting the INEGI into an autonomous body with its own budget in 2003.
Based on the Political Constitution of the United Mexican States, the Bank of Mexico Law, the Bank of Mexico Internal Regulations, the Credit Institutions Law, the General Law on Auxiliary Credit Organizations and Activities, the Financial Associations Law, the Credit Bureau Law, the National Banking and Securities Commission Law, the Tax Code of the Federation, and the Presidential Decree of December 31, 1952, as well as subsequent amendments thereof.
Based on the Federal Public Administration Organic Law, the General Law on Public Debt, the Law on Revenues, the Decree Approving the Expenditure Budget of the Federation (for each fiscal year), and the Internal Regulations of the Secretariat of Finance and Public Credit, as well as on subsequent amendments thereof.
In addition, the preparation is currently under way of a code of institutional values and a code of values related to the compilation of statistics.
In the case of the methodological revision of the monetary aggregates, the previous methodology co-existed for two years with the new one, to facilitate understanding of the scope of the changes.
For the NPPI, the Mexican Chart of Economic Activities—80 (CMAE-80) is used for the classification of economic activities and products. This is not consistent with ISIC (Revision 3) or the North American Industry Classification System (NAICS).
Mexico’s balance of payments statistics are reported to the IMF Statistics Department using the BPM5 methodology.
After the visit of the mission, the BM reclassified the interest from investment of international reserves according to the Operational Guidelines for the Data Template on International Reserves and Foreign Currency Liquidity.
After the visit of the mission, the BM began compiling and disseminating the international investment position.
After the visit of the mission, the BM developed and introduced a system with full coverage of the ODC.
After the visit of the mission, the BM initiated a process for compiling and disseminating the surveys in question. Since August 8, 2002, the BM has been posting on its website surveys of the BM, ODC, depository corporations, other financial corporations, and financial corporations.
After the visit of the mission, the BM updated the base period for the NCPI. The index is now compiled with the second half of June 2002 as the price reference period. It uses new expenditure weights from the year 2000, aligned to the second half of June 2002 for relative price changes.
After the visit of the mission, the BM began compiling and disseminating the international investment position.
In recognition of this limitation, the BM has started a project to simplify search procedures.
After the visit of the mission, the BM added a comprehensive methodological note to its website.
After the visit of the mission, the BM updated the base period for the NCPI. The index is now compiled with the second half of June 2002 as the price reference period. It uses new expenditure weights from the year 2000, aligned to the second half of June 2002 for relative price changes.
After the visit of the mission, the BM began compiling and disseminating the international investment position.
Mexico currently avails itself of a flexibility option under the SDDS in this regard.
After the visit of the mission, the BM began working toward the adoption of these recommendations. Since August 8, 2002, the BM has been disseminating on its website the central bank survey, the ODC survey (with full coverage), the depository corporations survey, and the other financial corporations survey. The series are monthly and start from 1997.
After the visit of the mission, the BM posted an extensive methodological note on its website.