Philippines: Report on the Observance of Standards and Codes (ROSC)—Data Module
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International Monetary Fund
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Publication Date:
25 Aug 2004
eISBN:
9781451831313
Language:
English
Keywords:
ISCR; CR; information; balance of payments; consumer price index; center; SDDS prescription; PPI survey; government purchase; unaudited BSP balance sheet; NSCB information center; Special Data Dissemination Standard (SDDS)
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This data module of the Report on the Observance of Standards and Codes (ROSC) provides a summary assessment of dissemination practices in the Philippines relative to the Special Data Dissemination Standard (SDDS). It presents a summary assessment of data quality for national accounts, consumer price, producer price, balance of payments, government finance, and monetary statistics, based on the Data Quality Assessment Framework (DQAF). The assessment reveals that the statistical system of the Philippines is sustained by generally strong legal and institutional frameworks and solid methodological foundations.

Abstract

This data module of the Report on the Observance of Standards and Codes (ROSC) provides a summary assessment of dissemination practices in the Philippines relative to the Special Data Dissemination Standard (SDDS). It presents a summary assessment of data quality for national accounts, consumer price, producer price, balance of payments, government finance, and monetary statistics, based on the Data Quality Assessment Framework (DQAF). The assessment reveals that the statistical system of the Philippines is sustained by generally strong legal and institutional frameworks and solid methodological foundations.

I. Introduction

1. Assessments in this data module of the Report on the Observance of Standards and Codes (ROSC) are based on information provided by the authorities to the team that visited Manila during September 1–16, 2003,1 official data available to the public, and user’s views. The report includes the following main components:

  • a summary assessment of dissemination practices of macroeconomic statistics relative to the Special Data Dissemination Standard (SDDS) (Section II);

  • a summary assessment of the quality of key macroeconomic statistics (Section III), based on the Data Quality Assessment Framework (DQAF) (detailed assessments are presented in a companion document—Detailed Assessments Using the Data Quality Assessment Framework); and

  • recommendations for improving the quality of macroeconomic statistics (Section IV).

2. To enrich the basis for assessment, the mission elicited the views of users of the macroeconomic statistics. With the assistance of the Bangko Sentral ng Pilipinas (BSP), a survey was conducted and a meeting held with selected users. Users were largely satisfied with the macroeconomic statistics, with a majority expressing satisfaction with access to official data. However, users saw scope for improvement, indicating interest on more detail (fiscal, external, and monetary data) and expanded coverage (fiscal data). In particular, there was interest in additional indicators of fiscal performance, sectoral classification of credit and other monetary aggregates, detailed foreign exchange market data, and longer balance of payments (BOP) series for data revised as a result of methodological change. Only a relatively small number of users were aware of the availability of advance release calendars, and a majority expressed dissatisfaction with available metadata for the government finance statistics (GFS). Most pointed to a need for more information on data revisions.

II. Assessment of Data Dissemination Practices and the SDDS

A. Overview of the SDDS

3. Dissemination practices have been assessed against the requirements of the SDDS. The SDDS is a dissemination standard (rather than a data quality standard) that promotes disclosure of information, including for assessing the suitability of data for various purposes. For each of four dimensions of dissemination (data, access, transparency, and integrity), the SDDS prescribes two to four practices to be monitored. The SDDS was established in 1996 to help countries disseminate comprehensive, timely, accessible, and reliable economic and financial statistics.

B. Current Dissemination Practices

4. The Philippines subscribed to the SDDS in August 1996 and started posting descriptions of methodology and source data (metadata) on the Dissemination Standards Bulletin Board (DSBB) in September 1996. As of September 15, 2003, the Philippines is in observance of the SDDS,2 having met specifications for coverage, periodicity, timeliness, and advance release calendars since January 2001. Also, the Data Template on International Reserves and Foreign Currency Liquidity has been disseminated and hyperlinked to the DSBB since January 2001. The National Summary Data Page has been hyperlinked to the DSBB since April 2001.

5. The institutions responsible for the compilation and dissemination of prescribed SDDS data categories are the BSP, the Department of Finance (DOF) and its Bureau of the Treasury (BTr), the National Statistical Coordination Board (NSCB), the National Statistics Office (NSO), and the Bureau of Labor and Employment Statistics (BLES). The NSCB produces the national accounts and is the SDDS national coordinator. The BSP is responsible for producing data on the banking system, interest rates, balance of payments, international reserves and foreign currency liquidity, international investment position, external debt, and exchange rates. The NSO produces statistics on production, employment, unemployment, prices, merchandise trade, and population. The BTr produces data on central government operations and debt, while the DOF disseminates data on general government operations.

6. The Philippines provides access to these data through a variety of publications and the following Internet Websites:

Data: coverage, periodicity, and timeliness

7. The coverage, periodicity, and timeliness of macroeconomic data are compared with SDDS requirements in Table 1. The Philippines meets SDDS specifications using flexibility options for the periodicity and timeliness of wage data (“as relevant”), and for the timeliness of production and producer price indices. Data on the central government, national accounts, and consumer prices exceed SDDS prescriptions on timeliness, while BOP data exceed the prescription for periodicity.

Table 1.

Philippines: Overview of Current Practices Regarding Coverage, Periodicity, and Timeliness of Data Compared to the SDDS

article image
Periodicity and timeliness: (D) daily; (W) weekly or with a lag of no more than one week from the reference data or the closing of the reference week; (M) monthly or with a lag of no more than one month; (Q) quarterly or with a lag of no more than one quarter; (A) annually; and (…) not applicable.

Given that the data are broadly disseminated by private means, the timeliness with which official data are disseminated is not time critical.

Access

8. Easy and equal access to official data is a fundamental condition for statistics to address the public’s needs and facilitate market efficiency. In observance of SDDS requirements on public access, advance release calendars are disseminated on the websites of the agencies responsible for data subject to this standard. These advance release calendars are supplemented by a quarter-ahead presentation of release dates on the DSBB. Data are released simultaneously to all users on the NSCB’s national statistics data page (http://www.nscb.gov.ph/sdds/nsdp.asp).

Transparency

9. The SDDS requires dissemination of documentation on methodology, data sources, and component detail. Summary methodology descriptions for the SDDS data categories are posted on the DSBB. In addition, agencies disseminate methodological information, component detail, and additional series to permit crosschecks and checks of reasonableness.

Integrity

10. The SDDS requires disclosure of the terms and conditions that govern data collection, compilation, and dissemination, including the provisions governing confidentiality. The laws, regulations, and decrees under which the official statistics are collected, compiled, and disseminated are posted in the websites of compiling agencies, and upon request.

11. Information on pre-release access is made known to the public only through the DSBB. The national accounts are transmitted to the Chairman of the NSCB and the President of the Republic one or two days before release. Employment data are transmitted for information to the Director General of the National Economic and Development Authority (NEDA) two days ahead of release, and to the President following clearance by the NEDA. Wage data are transmitted to senior officials at the Department of Labor and Employment at least three days before release. The monthly price report is delivered to the Director General of the NEDA one day prior to release. The producer price index is also delivered to the Director General of the Department of Trade and Industry. Data on central government operations are distributed to the BSP and the NEDA, and the commissioners of internal revenue and customs, one day prior to release. The BOP is made available to the BSP Governor and the Monetary Board under strict restrictions two working days prior to release. Merchandise trade data are provided to the Director General of the NEDA and the Secretary of the Department of Trade and Industry one day prior to release. Data released by statistical agencies are not accompanied by ministerial commentary, except for data on general government operations, which are usually accompanied by commentary on the reasons for deviations from targets and the outlook for the following year.

III. Summary Data Quality Assessment

Prerequisites of Quality

12. The statistical system is supported by adequate legal and institutional frameworks. These frameworks are the result of a long tradition of policy aimed at creating the conditions for statistical improvement, commencing with the consolidation of government statistical activity in 1940. Providing an overarching mandate for the dissemination of statistics, the Constitution recognizes the right of access to official records, including data used as a basis for policy development (Section 7, Article III). In addition, a substantial body of legislation underpins coordination in the production of macroeconomic statistics, with the NSCB playing a central role under the chairmanship of the NEDA. The NSCB is responsible for statistical coordination and policymaking. The Executive Board of the NSCB includes representatives from all ministries, other public sector compilers, local governments, and the private sector. Policy and operational coordination is fostered through NSCB approval of all surveys to be circulated to respondents, approval of selected new products and methodological changes, and formation of inter-agency task forces.

13. The NSCB promotes collaboration and quality awareness among compiling agencies, with varying degrees of success. Collaborative arrangements are not always effective in inducing early action to correct compilation problems. Long standing discrepancies in estimates of external sector data of the service and income accounts prepared by the NSCB and the BSP suggest a need for more results-oriented coordination of the statistical system. In addition, gaps in the compilation of import data involving the Bureau of Customs and the NSO highlight the urgent need for closer and more frequent collaboration at the technical level. In contrast, the NSCB has been very effective in raising awareness of new quality standards among government compilers and issued data dissemination guidelines and advance release calendars following the country’s subscription to the SDDS. In addition, it rates agencies according to progress toward statistical improvement. Also, its coordination of system-wide statistical plans (a rolling five-year annual statistical plan and a medium-term statistical development plan) has helped to articulate short- and medium-term objectives.

14. Statistical activity at the NSO is supported by adequate legislation and ample quality awareness. However, the NSO is faced with challenges in the collection and processing of data for the national accounts and foreign trade statistics. In particular, the response rate to surveys by the target collection date is low, which contributes to the very slow processing of survey data. To help address this problem, the NSO has recently streamlined the questionnaire of a key annual survey (with support from AusAID) and is planning to move to electronic circulation of a monthly indicators survey. As regards the legal basis for collection, the law mandates respondents to supply data within thirty days of the receipt of a request, and empowers the NSO to impose penalties for noncompliance. In line with NSCB policy, however, the NSO relies on close contact to promote voluntary response, including through public acknowledgement of good response performance. In the event, there is an imbalance in penalty options, which are set as six months imprisonment and/or an unindexed fine of 600 pesos (about US$12). The low cost of noncompliance weakens dissuasive power and enforcement capacity. There are strict legal safeguards on the confidentiality of data collected by the NSO.

15. Given current priorities, there are questions about the adequacy of NSO resources devoted to producing source data for national accounts and foreign trade statistics. While resources dedicated to price statistics appear broadly adequate, more staff time appears necessary to follow up on survey responses and process results. In addition, processing of customs data (which are available in electronic form) continues to rely on manual means, with unexploited opportunities to advise customs staff on ways to improve the trade data reporting system. This is a cause for grave concern as the NSO has been slow to correct the under-recording of imports of electronic goods, which was identified in the late 1990s. As this assessment is limited to NSO work on the macroeconomic statistics, it is difficult to judge whether the institution lacks sufficient budgetary resources or whether the need is for a refocusing of priorities (it produces over two-thirds of the statistics under the responsibility of the public sector). To support quality improvement, the NSO conducts a Quarterly Customer Satisfaction Survey and periodic consultative meetings with users.

16. The legal framework of the BSP along with good inter-agency consultations provide adequate support for the compilation and dissemination of the BOP and monetary statistics. There appears to be a need, however, to strengthen the BSP’s legal power to collect data from nonbanks. At present, supervisory legislation empowers the BSP to collect bank data, but there is no provision in its charter requiring nonbanks to respond to data requests. This gap notwithstanding, the BSP remains able to collect data, most likely on the basis of its excellent reputation and high credibility. As BOP compilation continues to move toward greater reliance on surveys and respondents (including nonbanks) are faced with more extensive data requests, maintaining a high response rate could become a challenge. While the BSP charter contains provisions to safeguard the confidentiality of individual data, the policy to guide the Monetary Board in granting access to such data is not specified. Recourse to penalty is sometimes necessary to ensure timely delivery of data, but the unindexed fine of 1,200 pesos (about US$25) per day appears low relative to banks’ financial capacity.

17. The BSP faces important resource management challenges in the pursuit for quality. Staffing constraints are severe in the units preparing the BOP and monetary statistics, even as the number of staff assigned to these units appears nominally adequate. This is because staff members are very frequently required to perform other high-profile duties. As a result, senior staff often dedicate less than half their time to statistical tasks. The focus of work incentives and performance appraisals are thus diverted from statistical responsibilities. Adverse consequences include insufficient attention to validation and analysis of the data, and a decreased capacity to absorb and implement technical assistance, including from the IMF. This is further complicated by a relatively high turnover rate that erodes human capital acquired through training, including that provided by the IMF. More computer resources would facilitate needed improvements, particularly in the monetary area. In spite of these constraints, the BSP is making progress in revising methodologies and improving data collection. While the BSP does not conduct user surveys and lacks an advisory body to review the quality of its statistics, it recently created a data quality team to monitor adherence to international standards.

18. While the legal framework requires the DOF and the BTr to compile fiscal data needed for policymaking, there is no specific requirement for public dissemination. Nevertheless, these institutions disseminate fiscal data on the operations of the national government with good periodicity and timeliness. The lack of complete and consistent information on the consolidated accounts of the central and general governments is in part related to the sporadic and informal nature of the collaboration between the DOF and BTr. Another factor has been the absence of sufficient provisions granting compilers timely access to source data and an adequate role in the classification of accounting data.

19. While endowed with sufficient staff and computers for compilation, there is some scope at the DOF and the BTr to improve resource management in the pursuit of quality statistics. In particular, the generation of the GFS from accounting records is not yet automated, which greatly complicates compilation of accurate fiscal statistics. While recent revisions to the national chart of accounts and the introduction of a New Government Accounting System reflect a pursuit of quality, these new norms do not fully conform to international statistical guidelines.

Integrity

20. The legal framework and the policy environment of the NSCB and the NSO contain ample assurances of integrity concerning the entire statistical system. These institutions emphasize technical independence and professionalism in their work, and provide ethical guidelines to staff. An excellent example of a policy to foster culture of professionalism is the Statistical Survey Review and Clearance System, under which the NSCB evaluates and approves all statistical surveys/censuses to be conducted by public sector agencies. In addition, the NSCB has prepared studies assessing the quality of the statistical system,3 while compilers are encouraged to present papers to the bi-annual National Convention on Statistics sponsored by the NSCB. The NSO publishes ample methodological information and advance release calendars on its website and was the first government agency to receive the Philippine Quality Award in 1999.

21. In a context of fiscal and administrative autonomy, the BSP maintains technical independence and high standards of professionalism, transparency, and ethical conduct. It emphasizes professionalism in the hiring and promotion of staff, encourages staff to lecture, attend professional conferences, and work on research relevant to their areas of responsibility. Selection of data sources is based exclusively on statistical considerations, and the BSP comments on erroneous interpretations of its data in the media. In line with SDDS prescriptions, the BSP disseminates metadata as well as terms and conditions of statistical production and has given advance notice of major changes in methodology or source data. Employees are subject to ethical and professional guidelines.

22. The DOF and the BTr promote professionalism and ethical conduct, but there is insufficient emphasis placed on the need for transparency. There are safeguards that help ensure technical autonomy in the compilation of the GFS, with the choice of data sources and methods free from political influence. Staff from both agencies is able to provide expert advice on technical aspects of the GFS. There is no advance notice of major changes in methodology, statistical techniques, or source data; but changes that cause a break in the series are often identified at the time of publication.

Methodological Soundness

23. The national accounts follow the concepts and definitions of the System of National Accounts 1968 (1968 SNA). However, significant progress has been achieved in implementing new annual series on the basis of the System of National Accounts 1993 (1993 SNA), with publication planned for 2004. Since 1991, a quarterly compilation system generates GDP estimates at current and at constant prices of 1985, both by production and by expenditure, with an annual breakdown by factor income. It also generates consolidated accounts of the nation, income and outlay accounts by sectors, and regional accounts. The scope, classification/sectorization, and basis of recording are broadly in accordance with international guidelines, with a few exceptions. One such exception relates to scope, as compilers treat as residents Overseas Filipino Workers (OFWs) residing abroad for more than one year. This treatment is not in conformity with the one-year rule for establishing “center of economic interest” (residency) in the 1993 SNA and the Balance of Payments Manual, fifth edition (BPM5), with a resulting overestimation of Gross National Income.

24. The concepts and definitions of the CPI are in line with international guidelines. The weights are derived from data consistent with household final consumption in the national accounts, and include owner-occupied housing and own-account production. Collection of market prices has a good geographical coverage, and national classifications are derived according to international guidelines.

25. The PPI, which is produced along with a set of short-term output indicators, is based on concepts and classification consistent with internationally accepted concepts. However, it covers only manufacturing with weights derived from sales data collected from an establishment survey. More detailed transaction specifications in recording commodity prices are needed to improve source data.

26. The GFS are compiled following most of the guidelines of A Manual on Government Finance Statistics (GFSM 1986). A major deviation relates to coverage, with no comprehensive statistics available on the consolidated finances of the central and general governments. Deviations also affect revenue and financing. Revenue includes privatization receipts, while financing includes government purchases of securities issued by the National Power Corporation, which should be treated as net lending. While substantial progress has been achieved in establishing source data for public sector balance sheets and in moving toward accrual accounting, no migration path has been considered for implementing the Government Finance Statistics Manual 2001 (GFSM 2001).

27. The balance of payments broadly follows the concepts and definitions set out in the BPM5. With regard to scope, the treatment of OFWs residing abroad for more than one year as residents deviates from BPM5, resulting in increased factor income credits and decreased current transfers in the external current account. The classification/sectorization of transactions is largely in line with international guidelines. Regarding the basis for recording, transactions are recorded at market prices and conversions of foreign-currency transactions into U.S. dollars—the unit of account—is made at exchange rates prevailing on the day of the transaction, or, when appropriate, by taking the change in two outstanding balances, sometimes adjusted for valuation changes (e.g., reserve assets). Transactions are generally recorded on a cash basis rather than on an accruals basis.

28. The analytical framework for compiling the monetary statistics follows concepts and definitions that are, in general, based on the IMF’s draft Guide to Money and Banking Statistics in International Financial Statistics, of December 1984. However, the BSP plans to revise procedures and formats for collection and compilation in line with the new Monetary and Financial Statistics Manual (MFSM). Currently, the definition of money is underestimated because the coverage of the monetary statistics does not include all financial institutions that accept deposits or issue deposit substitutes. Deposits at excluded institutions amounted to the equivalent of about 10 percent of bank deposits as of end-December 2002. Sectorization of the domestic economy is not in full compliance with international guidelines; for example, the household sector and private nonfinancial corporations are not separately identified. Holdings of securities are not valued at market prices and there are inconsistencies in the conversion of foreign currency denominated accounts to national currency values. With a few exceptions, accrued interest is not reflected in the underlying financial instrument.

Accuracy and Reliability

29. Quarterly survey data provide insufficient information for the compilation of the national accounts. Gaps are filled, to some extent, with data from various administrative sources. Although a comprehensive data collection program is in place, annual establishment surveys become available with a significant delay and thus are not being used for compiling the national accounts. Quarterly establishment surveys do not provide information on intermediate consumption, and a breakdown of inventories by type is also lacking. At present, compilation relies on an outdated benchmark year (1988) and fixed input-output ratios at 1985 prices. There are shortcomings in statistical techniques, especially those for deriving estimates at constant prices. For most activities, not all components of the production accounts are compiled. Instead, only value added at current prices is estimated, with the corresponding estimates at constant prices obtained by deflation. Also, taxes on value added and imports are calculated by direct deflation. The NSCB maintains the good practice of conducting revision studies on a regular basis.

30. Source data for the CPI are comprehensive, timely, and follow international guidelines on definitions and valuation. Statistical techniques are generally good, although sampling methods have not been employed. The lack of quality adjustments could undermine accuracy as the market basket evolves. Basic validation of data is emphasized, but further steps to ensure quality and investigate potential sources of bias in the index are needed to meet international standards. Data revisions are not investigated.

31. Annual establishment survey data used for current PPI weights are comprehensive and provide reasonable detail on industrial activities. Statistical methods and validation of the survey are also on par with international guidelines. However, the timeliness of these data is poor and does not allow timely index updates. Also, the number of price observations is fairly small and selection methods for establishments and products need improvement. Largely due to its role in a set of short-term indicators, the PPI lacks the degree of accuracy of more thorough index programs elsewhere, where the PPI plays a more independent role. While broadly adequate, there is room for improving the methods for aggregation, treatment of quality change, resolving missing prices, and updating the commodity basket.

32. Substantial source data (on public sector stocks and flows) are available, but not sufficiently used for compiling the GFS. While conforming to the 2003 chart of accounts, however, some of these data are not fully consistent with GFSM 1986 or GFSM 2001. No documented procedures are in place to assure that the audit findings on national government data are taken fully into account and that only the most accurate and reliable data sources are used.

33. Source data used for compiling the balance of payments remain incomplete and result in significant undercoverage. Such undercoverage is related to incomplete recording of trade flows derived from customs declarations by the NSO and remittances from OFWs channeled outside the banking system, limited survey coverage of other transactions settled outside the banking system, and difficulties in correctly classifying transactions channeled through foreign currency deposit units (FCDU). Assessment and validation needs to be strengthened and revision studies conducted on a routine basis.

34. Source data for monetary statistics are affected by a few shortcomings. Except for commercial banks and thrift banks, accounting data lacks adequate sectorization and classification, and data on financial derivatives are not available. The unaudited BSP balance sheet is provided to compilers with a lag of four weeks. To comply with SDDS requirements, the preliminary analytical accounts of the central bank are disseminated based on operational data. In view of delays in data reporting by commercial banks, estimates are used to comply with timeliness requirements. Statistical techniques are automated, including to prepare seasonally adjusted monetary data. The BSP verifies that data reporting practices followed by the banks are consistent with regulations and has systems and procedures in place to ensure quality in the compilation process. This includes adequate arrangements to ensure the flow of information among the various BSP units contributing to statistical production. Accuracy and reliability in collection and processing is monitored through crosschecks, but there are no routine revision studies.

Serviceability

35. Users and experts are continuously consulted in different forums concerning statistical issues related to the national accounts. Other mechanisms used to ensure the relevance of the statistics compiled are a Steering Committee for the implementation of the 1993 SNA and feedback received at the regular quarterly press conference for the release of the national accounts. The national accounts, which are disseminated on a timely basis, are generally consistent over a reasonable period of time. However, a recent major revision of electronic imports gave rise to a break in the series starting with the estimates for 2000. Moreover, there are inconsistencies with the BOP involving data on inward remittances from OFWs and travel expenditure of residents. A well established revision policy and practice is in place for routine revisions of quarterly estimates, although there is no policy for updating benchmark and base year estimates. Studies and analyses of revisions are made public.

36. To inform the production of the CPI and the PPI, the NSO participates in technical committees and policy meetings that include users. A quarterly user survey is also conducted to assess the overall serviceability of NSO statistics. However, the timeliness of the PPI does not meet the SDDS prescription, and there is a lack of long time series for the PPI. Revision policies for both indices are not well communicated to the public.

37. Dissemination of the monthly summary Cash Operations Report is timely and well received by users of the GFS. In contrast, the annual Statistical Bulletin is not released until almost two years after the reference year, limiting its usefulness to users. Also, it does not cover the consolidated finances of the central and general government operations. Disseminated data on the consolidated public sector suffer from shortcomings. Data on the public sector deficit do not match reported financing data largely because the above-the-line institutional coverage is different from that used to estimate financing. There are also differences in net bank credit according to Treasury and bank data, and budgetary arrears are poorly defined. More generally, reconciliation of fiscal data disseminated by various agencies (DOF, BTr, and the Office of the Commission on Audit) is hampered by differences in coverage, concepts and definitions, and the insufficient use of explanatory notes. No revision studies are made public.

38. Monthly press briefings in connection with the release of the balance of payments and annual consultations afford BSP the opportunity to seek feedback on the relevance of BOP data. Dissemination of BOP estimates is timely, with periodicity (monthly) exceeding the SDDS prescription. While broadly consistent within the dataset, there have been several large breaks in the series since the mid-1990s. Also, there are discrepancies with some external sector items incorporated in the national accounts. In addition, data on trade credit liabilities are not consistent with external debt statistics. Revision policy and practices are not formally communicated to the public, but revisions are explained through technical notes posted in the BSP website.

39. As regards the monetary statistics, preliminary estimates of central bank aggregates are disseminated with good timeliness, but revised data—based on the unaudited BSP balance sheet—are disseminated only about five weeks after the reference month. The preliminary data on the depositary corporations’ survey (monetary survey) are first disseminated on the BSP website 30 days after the reference month. The revised data are disseminated about six weeks after the reference month. There are differences in claims of commercial banks on the BSP vis-à-vis BSP’s liabilities to commercial banks in foreign currencies. These differences relate to BSP’s certificates of indebtedness originally sold to foreign banks and later bought by local banks. Main breaks and discontinuities in the time series are explained in detail in disseminated notes/footnotes. There are inconsistencies as regards the foreign liabilities of commercial banks presented in the BOP statistics in U.S. dollars and monetary data shown in pesos due to differences in currency conversion. The sectorization of bank claims on/deposits of the public sector is based on an outdated list of public sector entities, which may complicate accurate identification of bank financing of the different levels of government. Revised data are clearly identified, but users are not made aware of the causes for revisions.

Accessibility

40. Access to national accounts data is very good. Estimates, including a confidence interval for GDP, are made public simultaneously at a press conference and in the website of the NSCB. A publication available at the time of dissemination facilitates the understanding of the data by using appropriate layout, tables, and charts. Metadata is available on the DSBB, and reasonably extensive information on sources and methods is available on the website of the NSCB. A Manual on Sources and Methods is also publicly available for consultation. Assistance to users is good, with the names for contact persons along with telephones numbers and addresses available in the NSCB website.

41. Both the CPI and PPI are disseminated in a clear and predictable form through various media. Advance release calendars are published and data made available simultaneously to all users. Appropriate assistance to users is provided in the form of technical notes, contact information, publication lists and through the NSO library and the NSCB information center. Additional non-confidential data are available on request, including to academia. Metadata and technical notes are disseminated through the DSBB and the NSO website.

42. Monthly GFS on the national government are presented and disseminated in a manner that allows major aggregates to be identified and facilitates budgetary analysis. The level of detail for annual data is adequate even though not fully consistent with international methodologies. There is significant scope to improve descriptions of data sources and compilation methods, particularly in the Statistical Bulletin, which would permit a better understanding of fiscal data. Contact persons are identified in the website, but not in publications. No catalogues of publications on fiscal data are available.

43. The balance of payments are accessible through a range of dissemination media and are released simultaneously to all interested parties. The Balance of Payments Developments provides a monthly analysis of external sector developments including useful tables and charts. Nonpublished nonconfidential data or longer series can be provided upon request. However, the sign convention for recording financial account transactions (assets) and the terminology used for errors and omissions differ from BPM5 and may create confusion to users. The monthly data are released according to a pre-announced schedule, metadata in support of the statistics are available, and assistance to users is adequate.

44. Monetary statistics are disseminated in accordance with a pre-announced schedule in hardcopy and in electronic format with a presentation that generally facilitates the interpretation. The monthly Selected Philippine Economic Indicators covers developments in money markets, focusing on the balance sheet of the BSP, broad money, and credit. In addition to monthly monetary data, other key statistical indicators are disseminated weekly through press releases. It would be desirable that the BSP also disseminate other available data, including components of the central bank and the other depository corporations surveys, and details on sectoral components of money and credit aggregates to facilitate analysis. Unpublished and nonconfidential data are made available upon request free of charge. The BSP disseminates in the Selected Philippine Economic Indicators a short description of published indicators and aggregates. Also, the Concept Handbook provides users with full information on the framework for the compilation and presentation of the monetary statistics and important metadata details, such as concepts, scope, data sources, and compilation practices. A catalogue of publications is available in a hard copy and on the BSP website.

IV. Fund Staff Recommendations

45. Based on the data quality assessment, discussions with the authorities, and user feedback, the following actions are proposed to bring the compilation and dissemination of macroeconomic statistics more in line with best practice and to enhance their analytical usefulness. Recommendations on the BOP, the national accounts, and the fiscal statistics should be addressed with particular urgency.

General Recommendations

High priority

  • Strengthen coordination to facilitate early resolution of compilation problems that involve several agencies.

  • Intensify efforts to improve intersectoral data consistency and reconciliation.

Other recommendations

  • Ensure that agencies and units compiling macroeconomic statistics have adequate computer resources, staff, and training.

  • To improve the usefulness of statistics, initiate regular consultations with public and private sector users (including advisory committees), inform the public ahead of time of planned major methodological changes, disseminate revision policies, and prepare and publish revision studies.

  • Provide in relevant agency websites the information on pre-release access currently posted in the DSBB.

National Accounts

High priority

  • Adhere to the planned timetable for disseminating a new annual series based on the 1993 SNA guidelines. Also, begin development of consistent quarterly estimates.

  • Streamline establishment surveys, taking into account the absorptive capacity of the collecting agency and the need to limit the processing burden for respondents.

  • Ensure the comprehensiveness and representativeness of samples used in quarterly surveys of official activity.

Other recommendations

  • Derive from establishment surveys quarterly indicators of aggregate intermediate consumption by economic activity and a breakdown of inventories by type.

  • Change the compilation system of quarterly national accounts to produce all the components of the production account.

  • Improve the methodology for estimating value added and taxes at constant prices.

Consumer and Producer Price Indices

High priority

  • Improve the timeliness of PPI surveys.

  • To facilitate expanded coverage and improved accuracy of the PPI, consider separating its production from the program to compile a set of short-term indicators, where it plays a subsidiary role.

Other recommendations

  • Closely monitor consumer markets to identify possible sources of problems in the measurement of the CPI, and identify equivalent indicators for validation purposes.

  • Clarify the revision policy for the CPI and the PPI and disseminate more information on revisions.

  • Improve the aggregation method of the PPI and the treatment of missing prices.

  • Prepare a plan to incorporate the treatment of quality change in the calculation of the CPI and the PPI.

Government Finance Statistics

High priority

  • Grant one DOF entity the authority to coordinate data collection in accordance with international statistical guidelines, and the compilation and dissemination of a comprehensive and consolidated set of stock and flow data on the central and general governments.

  • Disseminate timely quarterly consolidated stock and flow data on the central government (including extrabudgetary funds) and annual data on general government.

Other recommendations

  • Adopt a plan to migrate to the GFSM 2001.

  • Establish procedures to help ensure the use of only the most accurate and reliable data sources for general government stock and flows.

Balance of Payments

High priority

  • Implement organizational changes to ensure that staff can concentrate on statistical production, and increase computer resources.

  • Improve the coverage of customs trade data and develop estimates of the value of remittances of OFWs channeled outside banks.

  • Intensify efforts to extend the coverage of enterprise surveys to close gaps with respect to transactions settled through accounts abroad.

  • Improve the recording of direct investment—services, income, flows, and stocks.

  • Remove the current estimates of trade credit and develop estimates based on surveys.

Other recommendations

  • Consider amending bank secrecy legislation to permit data collection for statistical purposes, while strengthening safeguards on confidentiality. Alternatively, conduct surveys to close gaps associated with FCDU secrecy rules.

  • Modify the residency concept applied to OFWs, with appropriate coverage (i.e., travel) and classification (i.e., workers’ remittances) changes.

  • Develop an alternative methodology to record freight and insurance transactions and to eliminate duplication in the estimation of passenger fares and other transportation services.

  • Compile interest on an accrual basis.

  • Develop a common dataset on exports and imports of goods and services for use in compiling the BOP and national accounts. Also ensure consistency across BOP, external debt, and international investment position statistics.

  • Incorporate estimates of financial derivatives.

  • Improve coverage of private sector debt, including intercompany debt and resident holdings of debt securities issued abroad by residents (e.g., pension funds).

  • For improved recording, consider foreign airlines as nonresident rather than resident.

Monetary Statistics

High priority

  • Implement organizational changes to ensure that staff can concentrate on statistical production, and increase computer resources.

  • Expand coverage to include all financial institutions accepting deposits or issuing deposit substitutes, establish uniform conversion of foreign currency accounts, and incorporate market valuation of bank securities in the compilation.

Other recommendations

  • Adopt a plan to implement the methodology/terminology of SNA 1993 and MFSM.

  • Establish routine updating of sectorization of bank assets and liabilities in line with changes in the composition of the different levels of government.

  • Provide compilers of monetary data with unaudited BSP balance sheet within 10 calendar days after the end of the reference month.

  • Exclude deposits of banks in liquidation from the monetary aggregates.

  • Incorporate accrued interest in the underlying financial instrument.

  • Improve coverage of financial instruments by collecting data on financial derivatives.

  • Disseminate on a monthly basis the detailed central bank survey, the other depository corporation survey, more components of the key monetary aggregates, and data on financial derivatives.

Table 2.

The Philippines—Data Quality Assessment Framework: Summary Presentation of Results

Key to symbols: NA = Not applicable; O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice not observed

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1

The team comprised Messrs. J.R. Rosales (Head), Segismundo Fassler, Jaroslav Kučera, John Motala, David V. Pritchett (all STA), Kari Manninen (Expert), and Ms. Sonia Bright (Assistant).

2

In accordance with the IMF Executive Board’s Third Review of the SDDS, IMF staff began monitoring subscriber performance in July 2000. Monitoring seeks to verify that data are released according to advance release calendars and correspond to metadata on the DSBB.

3

Virola, R.A., 2000, “National Experiences in the Quality Assessment and Improvement of Statistical Inputs and Outputs,” presented at the Statistical Quality Seminar in Taejon, Korea, December 2000; and, Virola, R.A., Salutan, M., and Cabrales, R., 2001, “Measuring the Quality of Products and Services of the Philippine Statistical System.”

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Cover IMF Staff Country Reports
Philippines: Report on the Observance of Standards and Codes (ROSC)—Data Module
Author:
International Monetary Fund
Volume/Issue:
Volume 2004: Issue 281
Publisher:
International Monetary Fund
ISBN:
9781451831313
ISSN:
1934-7685
Pages:
205
DOI:
https://doi.org/10.5089/9781451831313.002