I. Overall Assessment

1. The data module of the Report on the Observance of Standards and Codes (ROSC) describes a statistical system established by a legal framework that generally provides the necessary authority for the collection and compilation of statistics. Panama has a well-developed macroeconomic statistical system and the government recognizes the importance of good statistics for policy and investment decisions. Although the legal framework assigns responsibility for providing socio-economic statistics to the Controller General of the Republic of Panama (CG), the scope of these statistics is not specified. In practice, the CG compiles and disseminates national accounts, consumer price index (CPI), fiscal, and external statistics. The MEF compiles and disseminates fiscal statistics. Given Panama’s long history of dollarization and absence of a central bank, there is no assignment of responsibility for compiling and disseminating a complete set of monetary statistics. Instead, the Superintendency of Banks of Panama (SBP) provides banking sector statistics in line with its functions. Consequently, statistical practices for some elements of the DQAF do not apply to this sector (Box 1). Opportunities exist for improving the methodological basis and source data for most datasets. The CG faces resource limitations that at times compromise the standards of the statistics they compile. All statistical agencies are committed to further statistical progress by promoting implementation of the National Strategy for Statistical Development (NSSD).

2. Panama has participated in the GDDS since December 2000. Its metadata are regularly updated on the Dissemination Standards Bulletin Board (DSBB). Panama’s metadata are compared to the GDDS coverage, periodicity, and timeliness of data (Appendix). Panama meets GDDS standards for all core real sector categories, except for recommended extensions such as the producer price index (PPI). Panama exceeds GDDS recommendations in regard to: GDP estimates and the CPI, in that quarterly GDP estimates at constant prices are compiled and the timeliness of the CPI is only 15 days; public debt data, which are disseminated on a monthly basis; and balance of payments (BOP) and international investment position (IIP), which are disseminated on a quarterly basis.

3. The remainder of this section presents the mission’s main conclusions, applying the IMF’s Data Quality Assessment Framework (DQAF), July 2003 version. The presentation is in the context of the DQAF’s quality dimensions, by agency for the first two dimensions and across datasets for the remaining four. Section II provides a summary assessment by dataset based on a four-point scale and by agency and dataset in a tabular format based on the DQAF. Staff recommendations follow in Section III. The authorities’ response to this report and detailed assessments by sectors are presented in separate documents.

4. Prerequisites of quality and assurances of integrity

• The CG operates under a legal framework assigning clear responsibility for compiling and disseminating socio-economic statistics, without specifying scope. The law includes provisions for ensuring timely submission from data reporters, but the nominal amounts of penalties are outdated. The confidentiality of reporters’ responses is established by law. The CG has achieved de facto independence based on its long tradition of professionalism and has fostered adherence to ethical standards. Staff are well trained and highly professional. While computing equipment and software in some areas are adequate, staff, transportation resources and office facilities are not. Salaries are not competitive in the public administration. Staff performance is evaluated, with criteria for salary increases and bonuses that are difficult to meet. In some areas of the Directory of Statistics and Census (DSC), under the umbrella of the CG, almost half of the staff works on a contractual basis, which presents the risk of loss of experience in collecting, processing, and compiling statistics, potentially affecting quality. Budget resources are not fully sufficient for conducting surveys, most seriously for the CPI and BOP. Subject to resource limitations, data sources and methodologies are selected based on statistical considerations. The CG is committed to open communication with users and providing service, meeting their needs by responding to requests for data and metadata. In the framework of the NSSD, five seminars with users and two surveys, one for data producers and another for users, were conducted in 2005 for consulting them and identifying new data requirements, as well as establish relationships among data producers. Users’ committees are usually established when a new survey is conducted. An inter-institutional committee on national accounts meets periodically. As international best practice recommends, government agencies do not have any privileges over the public in access to data. Appropriate quality management processes are in place, but the monitoring of financial needs is not done regularly.

• The MEF has authority to manage information related to its legal responsibility for managing public finances and public debt. The MEF collaborates with the CG and shares data as needed to produce consistent fiscal statistics. The confidentiality of data sources is protected by various legal provisions, including the statistics laws. Staff size is adequate, with compensation above the salary level of other public entities. Staff are trained throughout their employment and oriented to meet professional standards and produce quality work, but programs for evaluating staff performance and measuring and improving the quality of work are lacking. Computing and office resources are of very high quality. While there is no established procedure for identifying the needs of users, their suggestions on the format for disseminating relevant fiscal statistics are incorporated. Production of statistics is legally protected from political interference.

• The SBP is the official agency compiling and disseminating banking sector statistics. The SBP collaborates with the CG and MEF, and international agencies, including the Fund, in providing analytically useful data for macroeconomic analysis. Staff size is adequate and salaries are competitive. Staff are expected to meet high standards for professional and ethical behavior, and have guidelines outlining correct behavior when confronted with potential conflict of interest. Computing equipment and software are up to date and appropriate. The SBP does not have regular formal consultation with private users on data needs. SBP’s independence is supported by law. Information is provided transparently and free of charge, without prior access for government agencies.

5. Methodologies for compiling macroeconomic statistics broadly conform with internationally accepted standards, specifically, the System of National Accounts 1993 (1993 SNA), Consumer Price Index Manual, 2004 (CPI 2004), and the fifth edition of the Balance of Payments Manual (BPM5). However, some shortcomings exist. Quarterly GDP estimates, introduced in 2005 at constant prices beginning in 1996, apply outdated input/output ratios from 1996. CPI coverage falls short of international standard practices, for example, by excluding certain types of households (rural, one-person, lowest and highest deciles of the income distribution). Some methodological issues exist regarding the treatment of missing prices and quality adjustments. The MEF follows A Manual on Government Finance Statistics, 1986 (GFSM 1986). The CG adjusts data provided by MEF to present fiscal statistics on a mixed cash and accrual basis. There is no official commitment to implement a plan to migrate to Government Finance Statistics Manual 2001 (GFSM 2001). Nonfinancial public sector (NFPS) statistics are disseminated excluding the Panama Canal Authority (PCA) and using only financing data for institutions not in the sample of non-budgetary institutions. The concepts and definition for monetary statistics are not applicable to banking sector statistics disseminated by the SBP, although the scope and basis for recording are broadly consistent with the MFSM. Methodological shortcomings in BOP statistics include recording on a cash basis of interest on external public debt and not excluding resident holdings, and not compiling FDI abroad. The basis for recording in all datasets could come closer to internationally accepted methodological guidelines.

6. Accuracy and reliability are broadly adequate, with improvement needed in most datasets. Banking sector statistics were rated the highest in this dimension. Statistical surveys in the main sectors are conducted on a timely basis. Shortcomings in national accounts, the CPI, and balance of payments statistics are partly attributable to insufficient budget resources for conducting surveys. As a result of periodic shortfalls, price data are not always collected on the same date every month. The base year of 1996 for constant price estimates of GDP is outdated. The 2001 business register for conducting national accounts surveys is updated only with new enterprises, but does not exclude enterprises that have gone out of business. The household income and expenditure survey is conducted every 10 years. Discrepancies between GDP estimates based on the production and expenditure approaches can not be investigated as some expenditure components are not derived independently. Surveys for BOP statistics are incomplete, not providing data on some private sector services and financial transactions, such as direct investment abroad. Problems with source data from the free trade zones compromise the adequacy of trade statistics. Processes for assessment and validation of source data are needed. With the exception of major revisions for the national accounts and CPI, regular revision studies are not conducted.

7. Serviceability of published macroeconomic statistics is satisfactory. The GDDS recommendations for periodicity and timeliness are met and, as mentioned, exceeded for GDP, the CPI, public debt, BOP, and IIP statistics. The timeliness of disseminated banking sector statistics should be improved owing to early availability of source data. Statistics within datasets are consistent, but some discrepancies exist across datasets, for which explanatory notes are not always provided. Revision studies when conducted are not made public, except for the CPI.

8. Accessibility of macroeconomic statistics is good, as they are released to all users on a preannounced schedule, except for GFS flows disseminated by the MEF and banking sector statistics. Summary metadata for all sectors are available in the GDDS, but detailed methodology is only available for national accounts, CPI, and BOP. Prompt and knowledgeable service and support are provided to users. Unpublished non-confidential data are generally made available on request from users, but such availability is not publicized.

9. To expand the basis for the assessment, the mission conducted a user survey and held meetings with users to ascertain their views. Overall, users found macroeconomic statistics accurate and reliable, and statistics agencies professional and helpful in providing data. They were satisfied with access to statistics, making about equal use of official websites, printed copies, and e-mail correspondence. Generally users, especially in private industry and the financial sector, would appreciate greater periodicity and timeliness in dissemination of data. Some noted a need for improvement in the consistency of statistics, including adjustment of historical fiscal series when methodological changes are introduced. Users noted areas for improvement in all datasets. Specifically, they indicated a need for better adherence to calendars for the release and revision of data, with a need for improvement in revision policy for fiscal statistics. Despite this shortcoming, they gave credit to statistical agencies, especially the CG, for providing additional breakdowns and explaining revisions on request.

II. Assessment by Agency and Dataset

10. Assessment of the quality of five macroeconomic datasets—national accounts, consumer price index, government finance, monetary, and balance of payments statistics—was conducted using the DQAF, July 2003. In this section, the results are presented at the level of the DQAF elements and using a four-level rating scale (Table 1). Assessments of the prerequisites of data quality and the assurances of integrity (Dimensions “0” and “1” of the DQAF) for the CG, MEF, and SBP are presented in Tables 2a–c, respectively. For each dataset, the assessments of methodological soundness, accuracy and reliability, serviceability, and accessibility (Dimensions “2” to “5” of the DQAF) are shown in Tables 3a–e.

Table 1.

Panama: Data Quality Assessment Framework²—Summary Results

Practice observed: current practices generally in observance meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies.Practice largely observed: some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices. Practice largely not observed: significant departures and the authorities will need to take significant action to achieve observance. Practice not observed: most DQAF practices are not met. Not applicable: used only exceptionally when statistical practices do not apply to a country’s circumstances.

Table 1.

Panama: Data Quality Assessment Framework²—Summary Results

Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable
Datasets	National Accounts	Consumer Price Index	Government Finance Statistics	Monetary Statistics	Balance of Payments Statistics
Dimensions/Elements
0. Prerequisites of quality
0.1 Legal and institutional environment	LO	LO	O	LO	LO
0.2 Resources	LO	LNO	LO	LO	LO
0.3 Relevance	O	LO	O	LO	LO
0.4 Other quality management	LO	LO	LO	O	LO
1. Assurances of integrity
1.1 Professionalism	O	O	O	O	O
1.2 Transparency	LO	LO	O	O	LO
1.3 Ethical standards	O	O	O	O	O
2. Methodological soundness
2.1 Concepts and definitions	O	O	LO	NA	LO
2.2 Scope	O	LNO	LNO	O	LO
2.3 Classification/sectorization	O	LO	LO	NA	O
2.4 Basis for recording	LO	LO	O	LO	LO
3. Accuracy and reliability
3.1 Source data	LO	LO	O	LO	LO
3.2 Assessment of source data	LO	LO	LO	O	O
3.3 Statistical techniques	LNO	LO	LO	O	LO
3.4 Assessment and validation of intermediate data and statistical outputs	LO	O	LO	O	LO
3.5 Revision studies	LNO	LO	LO	NA	LNO
4. Serviceability
4.1 Periodicity and timeliness	O	O	O	LO	O
4.2 Consistency	LO	O	LO	LO	LO
4.3 Revision policy and practice	LO	LO	LO	O	LO
5. Accessibility
5.1 Data accessibility	LO	LO	LO	LO	O
5.2 Metadata accessibility	O	LO	LNO	LNO	LO
5.3 Assistance to users	LO	LO	LO	O	O

Practice observed: current practices generally in observance meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies.Practice largely observed: some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices. Practice largely not observed: significant departures and the authorities will need to take significant action to achieve observance. Practice not observed: most DQAF practices are not met. Not applicable: used only exceptionally when statistical practices do not apply to a country’s circumstances.

View Table

Table 1.

Panama: Data Quality Assessment Framework²—Summary Results

Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable
Datasets	National Accounts	Consumer Price Index	Government Finance Statistics	Monetary Statistics	Balance of Payments Statistics
Dimensions/Elements
0. Prerequisites of quality
0.1 Legal and institutional environment	LO	LO	O	LO	LO
0.2 Resources	LO	LNO	LO	LO	LO
0.3 Relevance	O	LO	O	LO	LO
0.4 Other quality management	LO	LO	LO	O	LO
1. Assurances of integrity
1.1 Professionalism	O	O	O	O	O
1.2 Transparency	LO	LO	O	O	LO
1.3 Ethical standards	O	O	O	O	O
2. Methodological soundness
2.1 Concepts and definitions	O	O	LO	NA	LO
2.2 Scope	O	LNO	LNO	O	LO
2.3 Classification/sectorization	O	LO	LO	NA	O
2.4 Basis for recording	LO	LO	O	LO	LO
3. Accuracy and reliability
3.1 Source data	LO	LO	O	LO	LO
3.2 Assessment of source data	LO	LO	LO	O	O
3.3 Statistical techniques	LNO	LO	LO	O	LO
3.4 Assessment and validation of intermediate data and statistical outputs	LO	O	LO	O	LO
3.5 Revision studies	LNO	LO	LO	NA	LNO
4. Serviceability
4.1 Periodicity and timeliness	O	O	O	LO	O
4.2 Consistency	LO	O	LO	LO	LO
4.3 Revision policy and practice	LO	LO	LO	O	LO
5. Accessibility
5.1 Data accessibility	LO	LO	LO	LO	O
5.2 Metadata accessibility	O	LO	LNO	LNO	LO
5.3 Assistance to users	LO	LO	LO	O	O

Practice observed: current practices generally in observance meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies.Practice largely observed: some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices. Practice largely not observed: significant departures and the authorities will need to take significant action to achieve observance. Practice not observed: most DQAF practices are not met. Not applicable: used only exceptionally when statistical practices do not apply to a country’s circumstances.

Table 2a.

Panama: Assessment of Data Quality—Dimensions 0 and 1—Controller General of the Republic of Panama

Table 2a.

Panama: Assessment of Data Quality—Dimensions 0 and 1—Controller General of the Republic of Panama

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment. Article 280 of the 1972 Constitution and the Presidential Decrees 7 and 194 of 1960 and 1997, respectively, and the Law 32 of 1984 assign the task to the CG to compile and disseminate national statistics in Panama. To fulfill its mandate, the CG, through the DSC, conducts and coordinates economic and social statistical activities in general, and is authorized to request data from public and private entities. The legal framework assigns responsibilities for the compilation of socio-economic statistics. Although the scope of these statistics is not clearly specified, the CG compiles and disseminates real, fiscal, and external sector statistics. In accordance with the Presidential Decree 7, the CG guarantees the confidentiality of the data used, and establishes sanctions on reporters for noncompliance, although the sanctions have become outdated. The CG and the rest of agencies of the National Statistics System (NSS) are promoting implementation of the NSSD aimed at reinforcing the NSS, standardizing statistics in the Central American region, and improving management among national agencies, in the framework of PARIS21. Resources. Although a core staff with adequate experience and training is maintained for compiling statistics, financial resources are insufficient for conducting surveys related to GDP, CPI, and BOP and updating computing resources. Heavy reliance on temporary employees in some areas of the DSC and insufficient transportation equipment and staff in regional offices pose a potential risk to the timeliness of quarterly GDP, CPI, and BOP. Work space and access to the Internet and direct phone lines in some DSC units are limited. Budget execution and resource needs are not monitored regularly. Relevance was investigated in 2005 through seminars and surveys to data producers and users. Information on specific needs is sought by informal contacts with users and data providers as well as by monitoring the electronic mailbox on the CG website and data requests. Users are kept informed on the current work programs through the website and publications, which include press releases and advance release calendars. Some statistical units in the DSC create users’ committees when new surveys are to be conducted. An inter-institutional committee on national accounts meets periodically. Other quality management is reflected in the CG’s five-year strategic planning system and annual work programs developed by each statistical unit. There is need for formal processes and routines for quality control.

Professionalism is ensured by a range of measures. The Law of the CG gives technical independence and autonomy to its staff. The Law also ensures that CG management is supportive of professionalism through recruitment criteria that focus on relevant academic skills. Staff involved in compiling statistics in CG are given opportunities to enhance their professionalism through participation in external courses and on-the-job training. No external agencies may interfere with the compilation and dissemination of data produced. Subject to resource limitations, only statistical considerations are taken into account when choosing data sources and statistical techniques, as well as making decisions on disseminating data. Transparency. Electronic publications make reference to the NSSD. The “Road Map,” which mainly describes the work plan for developing the NSS, is available on the CG website. Although there is public access to the legal framework for the compilation and dissemination of data, this information is not posted on the CG website. Government agencies do not have pre-release access to the data. Some publications do not identify where additional information on the CG and its publications can be found. There is no pre- announced notification to users on changes in data and methodologies. Ethical standards. The behavior of the CG staff is governed by the Code of Ethics of Public Servants and by the CG’s By-Laws, which cover conflict of interest, outside employment, and disciplinary actions among others. Ethics is one of the Ten Commandments in the CG that are publicized widely. New staff and current staff are periodically reminded about the importance of observance of ethics to achieve institutional excellence.

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Table 2a.

Panama: Assessment of Data Quality—Dimensions 0 and 1—Controller General of the Republic of Panama

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment. Article 280 of the 1972 Constitution and the Presidential Decrees 7 and 194 of 1960 and 1997, respectively, and the Law 32 of 1984 assign the task to the CG to compile and disseminate national statistics in Panama. To fulfill its mandate, the CG, through the DSC, conducts and coordinates economic and social statistical activities in general, and is authorized to request data from public and private entities. The legal framework assigns responsibilities for the compilation of socio-economic statistics. Although the scope of these statistics is not clearly specified, the CG compiles and disseminates real, fiscal, and external sector statistics. In accordance with the Presidential Decree 7, the CG guarantees the confidentiality of the data used, and establishes sanctions on reporters for noncompliance, although the sanctions have become outdated. The CG and the rest of agencies of the National Statistics System (NSS) are promoting implementation of the NSSD aimed at reinforcing the NSS, standardizing statistics in the Central American region, and improving management among national agencies, in the framework of PARIS21. Resources. Although a core staff with adequate experience and training is maintained for compiling statistics, financial resources are insufficient for conducting surveys related to GDP, CPI, and BOP and updating computing resources. Heavy reliance on temporary employees in some areas of the DSC and insufficient transportation equipment and staff in regional offices pose a potential risk to the timeliness of quarterly GDP, CPI, and BOP. Work space and access to the Internet and direct phone lines in some DSC units are limited. Budget execution and resource needs are not monitored regularly. Relevance was investigated in 2005 through seminars and surveys to data producers and users. Information on specific needs is sought by informal contacts with users and data providers as well as by monitoring the electronic mailbox on the CG website and data requests. Users are kept informed on the current work programs through the website and publications, which include press releases and advance release calendars. Some statistical units in the DSC create users’ committees when new surveys are to be conducted. An inter-institutional committee on national accounts meets periodically. Other quality management is reflected in the CG’s five-year strategic planning system and annual work programs developed by each statistical unit. There is need for formal processes and routines for quality control.

Professionalism is ensured by a range of measures. The Law of the CG gives technical independence and autonomy to its staff. The Law also ensures that CG management is supportive of professionalism through recruitment criteria that focus on relevant academic skills. Staff involved in compiling statistics in CG are given opportunities to enhance their professionalism through participation in external courses and on-the-job training. No external agencies may interfere with the compilation and dissemination of data produced. Subject to resource limitations, only statistical considerations are taken into account when choosing data sources and statistical techniques, as well as making decisions on disseminating data. Transparency. Electronic publications make reference to the NSSD. The “Road Map,” which mainly describes the work plan for developing the NSS, is available on the CG website. Although there is public access to the legal framework for the compilation and dissemination of data, this information is not posted on the CG website. Government agencies do not have pre-release access to the data. Some publications do not identify where additional information on the CG and its publications can be found. There is no pre- announced notification to users on changes in data and methodologies. Ethical standards. The behavior of the CG staff is governed by the Code of Ethics of Public Servants and by the CG’s By-Laws, which cover conflict of interest, outside employment, and disciplinary actions among others. Ethics is one of the Ten Commandments in the CG that are publicized widely. New staff and current staff are periodically reminded about the importance of observance of ethics to achieve institutional excellence.

Table 2b.

Panama: Assessment of Data Quality—Dimensions 0 and 1—Ministry of Economy and Finance

Table 2b.

Panama: Assessment of Data Quality—Dimensions 0 and 1—Ministry of Economy and Finance

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment. The laws give the MEF the mandate to produce government finance statistics. However, the Constitution gives the CG responsibility for the national statistics system. The MEF and CG cooperate to produce fiscal statistics, supported by legal regulations. Meetings are held with respondents and users to facilitate collection of source data and to improve the understanding and use of the published records. The Presidential Decree 7 of 1960 and the Transparency Law ensure the respondents complete confidentiality. Access to source data generation systems is direct and free flowing. Resources. Staff are adequate for the production of GFS and compensation is better than average wages in public administration. There is no staff assessment system in place. The physical equipment, including computers, is of excellent quality, although access to the Internet is limited. Financial resources are sufficient to support fully statistical production. There is no system in place for monitoring and, therefore, enhancing the efficient use of resources. Relevance. Staff participate in workshops and seminars on the production of GFS relevant to users. A specific procedure established by the Transparency Law is available to meet the requirements of the users, whose suggestions or comments are included in the dissemination forms when relevant. Other quality management. There is awareness regarding the importance of quality, although there is no specific improvement program or system for quality measurement. Compiling units assume the initiative in view of the lack of an institutional policy. Assessments of annual processes are performed, focusing on only one issue at a time. No progress has been made on implementing the recommendations of the 2004 GFS mission, which included adoption of a GFSM 2001 migration plan, expansion of the institutional sample, full cash flow compilation for all institutions, and review of procedures for data collection improvement.

Professionalism. There is a strong culture of professionalism and independence in the statistical work, which is supported by the Transparency Law and the Code of Ethics of Public Servants. Within resource limitations, only statistical criteria govern the decisions on collection, compilation and dissemination. The units in charge of the production of statistics monitor possible errors in interpretation by users. These units provide advice and offer statements to correct misinterpretation in a timely manner. Transparency. The legal standards that regulate the collection, compilation, and dissemination of statistical information appear on the MEF website. However, the specific articles or sections that support the production of statistics are not identified. Statistical information is delivered simultaneously to all interested parties, including the authorities from the executive and legislative branches. All statistical products clearly identify the producing unit, correctly allocating the responsibility and ownership in joint publications. The use of figures is constantly monitored. Minor methodological changes introduced to date have been reported in the publications where they were incorporated. No important methodological changes have been introduced in the past few years. Ethical standards. The Transparency Law and the Code of Ethics of Public Servants establish clear standards that protect the production of statistics in the presence of any type of political interference. These laws also contain regulations to guard against conflict of interest. There is a strong organizational culture of respect towards professional independence and probity in the production of statistics, which favors the application of the legal standards.

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Table 2b.

Panama: Assessment of Data Quality—Dimensions 0 and 1—Ministry of Economy and Finance

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment. The laws give the MEF the mandate to produce government finance statistics. However, the Constitution gives the CG responsibility for the national statistics system. The MEF and CG cooperate to produce fiscal statistics, supported by legal regulations. Meetings are held with respondents and users to facilitate collection of source data and to improve the understanding and use of the published records. The Presidential Decree 7 of 1960 and the Transparency Law ensure the respondents complete confidentiality. Access to source data generation systems is direct and free flowing. Resources. Staff are adequate for the production of GFS and compensation is better than average wages in public administration. There is no staff assessment system in place. The physical equipment, including computers, is of excellent quality, although access to the Internet is limited. Financial resources are sufficient to support fully statistical production. There is no system in place for monitoring and, therefore, enhancing the efficient use of resources. Relevance. Staff participate in workshops and seminars on the production of GFS relevant to users. A specific procedure established by the Transparency Law is available to meet the requirements of the users, whose suggestions or comments are included in the dissemination forms when relevant. Other quality management. There is awareness regarding the importance of quality, although there is no specific improvement program or system for quality measurement. Compiling units assume the initiative in view of the lack of an institutional policy. Assessments of annual processes are performed, focusing on only one issue at a time. No progress has been made on implementing the recommendations of the 2004 GFS mission, which included adoption of a GFSM 2001 migration plan, expansion of the institutional sample, full cash flow compilation for all institutions, and review of procedures for data collection improvement.

Professionalism. There is a strong culture of professionalism and independence in the statistical work, which is supported by the Transparency Law and the Code of Ethics of Public Servants. Within resource limitations, only statistical criteria govern the decisions on collection, compilation and dissemination. The units in charge of the production of statistics monitor possible errors in interpretation by users. These units provide advice and offer statements to correct misinterpretation in a timely manner. Transparency. The legal standards that regulate the collection, compilation, and dissemination of statistical information appear on the MEF website. However, the specific articles or sections that support the production of statistics are not identified. Statistical information is delivered simultaneously to all interested parties, including the authorities from the executive and legislative branches. All statistical products clearly identify the producing unit, correctly allocating the responsibility and ownership in joint publications. The use of figures is constantly monitored. Minor methodological changes introduced to date have been reported in the publications where they were incorporated. No important methodological changes have been introduced in the past few years. Ethical standards. The Transparency Law and the Code of Ethics of Public Servants establish clear standards that protect the production of statistics in the presence of any type of political interference. These laws also contain regulations to guard against conflict of interest. There is a strong organizational culture of respect towards professional independence and probity in the production of statistics, which favors the application of the legal standards.

Table 2c.

Panama: Assessment of Data Quality—Dimensions 0 and 1—Superintendency of Banks of Panama

Table 2c.

Panama: Assessment of Data Quality—Dimensions 0 and 1—Superintendency of Banks of Panama

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment. The SBP is the official agency collecting, compiling, and disseminating banking sector statistics. The legal basis for the compilation and dissemination of monetary statistics, which have a broader coverage and different analytical approach than banking sector statistics, is not clearly assigned to the SBP or any other official agency. Even though the responsibility for compiling monetary statistics is not clearly assigned to the SBP by law, this agency collaborates with international organizations, such as the IMF, in providing data that are analytically useful for macroeconomic analysis. However, these data are not published in national sources following the framework and methodology of international statistical standards, such as the MFSM or the 1993 SNA. Resources. The number of employees involved in the compilation of monthly and quarterly statistics is adequate, and salaries are competitive compared to other public and private institutions. Compilers use modern personal computers and adequate software. Financial resources are broadly adequate to support the current programs for compiling statistics. However, the workspace is less than adequate to facilitate the efficient compilation of statistics. Relevance. In addition to feedback from internal users, obtained through an annual evaluation of the statistical products, the SBP conducts periodic meetings (once a year) and regular telephone contacts with the staff of the CG and MEF to improve the quality and timeliness of the specific reports required by them. However, the SBP does not have a proactive policy of regularly consulting private sector users. Other quality management. To improve staff productivity, achieve excellence, and guarantee user satisfaction through the highest quality of its services, the SBP holds an annual meeting, with participation of all staff. The Economic Studies Department carries out detailed analyses of the quality of the data processed every quarter.

Professionalism. The statutory provisions under which the SBP compiles banking sector statistics are adequate to support its independence. In this regard, the choice, tenure, and reporting arrangements of the Superintendent are supportive of the professional independence of the SBP. The Superintendent’s tenure (five years according to Article 11 of the Decree- Law No. 9 of 1998 on the Banking Regime and on the Superintendency of Banks (DL-9)) does not coincide with that of current government. The Directors’ tenure is eight years (Article 9). Qualifications and other requirements for hiring the Superintendent and Directors are also regulated in Articles 10 and 8, respectively; conflict of interest is addressed in Article 12. Removal of Superintendent and Directors is addressed in Articles 14 and 15. The SBP comments on errors of interpretation and misuse of statistics when necessary. Transparency. The DL-9, which is available on the SBP website, contains the terms and conditions under which statistics are collected, processed, and disseminated. Chapter VIII of the DL-9 on “documents and reports” deals with aspects of banking sector reporting requirements, describing the types of information that the SBP is entitled to request from the banks and disclose to the public. All information produced by the SBP is disseminated free of charge. No government official outside the SBP has regular access to banking sector statistics prior to their release on the Web. Major changes on banking sector statistics are not always pre-announced. Ethical standards. There are clear guidelines outlining correct behavior when the staff is confronted with potential conflict of interest situations. In addition to Article 12 of the DL-9 regulating conflict of interests of the Superintendent and directors, the Working Internal Regulation No. 14–98 of August 27, 1998 describes the rights and obligations of the SBP staff (Chapter 7). The regulation is made known to the staff when they join the Institution. This regulation also includes sanctions for misconduct in Chapter 9.

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Table 2c.

Panama: Assessment of Data Quality—Dimensions 0 and 1—Superintendency of Banks of Panama

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment. The SBP is the official agency collecting, compiling, and disseminating banking sector statistics. The legal basis for the compilation and dissemination of monetary statistics, which have a broader coverage and different analytical approach than banking sector statistics, is not clearly assigned to the SBP or any other official agency. Even though the responsibility for compiling monetary statistics is not clearly assigned to the SBP by law, this agency collaborates with international organizations, such as the IMF, in providing data that are analytically useful for macroeconomic analysis. However, these data are not published in national sources following the framework and methodology of international statistical standards, such as the MFSM or the 1993 SNA. Resources. The number of employees involved in the compilation of monthly and quarterly statistics is adequate, and salaries are competitive compared to other public and private institutions. Compilers use modern personal computers and adequate software. Financial resources are broadly adequate to support the current programs for compiling statistics. However, the workspace is less than adequate to facilitate the efficient compilation of statistics. Relevance. In addition to feedback from internal users, obtained through an annual evaluation of the statistical products, the SBP conducts periodic meetings (once a year) and regular telephone contacts with the staff of the CG and MEF to improve the quality and timeliness of the specific reports required by them. However, the SBP does not have a proactive policy of regularly consulting private sector users. Other quality management. To improve staff productivity, achieve excellence, and guarantee user satisfaction through the highest quality of its services, the SBP holds an annual meeting, with participation of all staff. The Economic Studies Department carries out detailed analyses of the quality of the data processed every quarter.

Professionalism. The statutory provisions under which the SBP compiles banking sector statistics are adequate to support its independence. In this regard, the choice, tenure, and reporting arrangements of the Superintendent are supportive of the professional independence of the SBP. The Superintendent’s tenure (five years according to Article 11 of the Decree- Law No. 9 of 1998 on the Banking Regime and on the Superintendency of Banks (DL-9)) does not coincide with that of current government. The Directors’ tenure is eight years (Article 9). Qualifications and other requirements for hiring the Superintendent and Directors are also regulated in Articles 10 and 8, respectively; conflict of interest is addressed in Article 12. Removal of Superintendent and Directors is addressed in Articles 14 and 15. The SBP comments on errors of interpretation and misuse of statistics when necessary. Transparency. The DL-9, which is available on the SBP website, contains the terms and conditions under which statistics are collected, processed, and disseminated. Chapter VIII of the DL-9 on “documents and reports” deals with aspects of banking sector reporting requirements, describing the types of information that the SBP is entitled to request from the banks and disclose to the public. All information produced by the SBP is disseminated free of charge. No government official outside the SBP has regular access to banking sector statistics prior to their release on the Web. Major changes on banking sector statistics are not always pre-announced. Ethical standards. There are clear guidelines outlining correct behavior when the staff is confronted with potential conflict of interest situations. In addition to Article 12 of the DL-9 regulating conflict of interests of the Superintendent and directors, the Working Internal Regulation No. 14–98 of August 27, 1998 describes the rights and obligations of the SBP staff (Chapter 7). The regulation is made known to the staff when they join the Institution. This regulation also includes sanctions for misconduct in Chapter 9.

Table 3a.

Panama: Assessment of Data Quality—Dimensions 2 to 5—National Accounts

Table 3a.

Panama: Assessment of Data Quality—Dimensions 2 to 5—National Accounts

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions. National accounts are compiled broadly in accordance with the 1993 SNA. Scope. The 1993 SNA tables and accounts that the ISWGNA specifies as minimum requirements are compiled on a regular basis. Quarterly GDP is compiled at constant prices. The Colón Free Zone (CFZ) is included as part of the economy. Delimitation of production and assets boundaries are in line with the 1993 SNA, with some minor exceptions. Classification/sectorization. The national classification systems of activities and products have a strong correspondence with ISIC Rev. 3 and CPC, respectively. COFOG is used to classify government expenditure by functions and the COICOP is applied for households’ final consumption by purpose. Basis for recording. Although recording broadly accords with the accrual and valuation principles of the 1993 SNA, some government transactions and external transactions are recorded on a cash basis. Surveys do not clarify that the valuation of output and sales should exclude taxes and subsidies on products, and intermediate consumption should exclude deductible VAT. Work in-progress is recorded in the period it is produced. Transactions between establishments are not recorded on a gross basis.	Source data are based on data from census, surveys, and administrative records. Surveys provide adequate data for production accounts. The 2001 business register is updated only with new enterprises, but does not exclude enterprises that have gone out of business. HIES is conducted every 10 years instead of five years. The household survey is only conducted during August. PPI is partially compiled (in some cases prices include sales taxes and margins). Export and import price indexes are being developed. Assessment of source data. Outliers are confirmed with respondents and corrected. Information on sampling and non-sampling errors for surveys is unavailable. Statistical techniques. The base year is outdated (1996). An estimate of non-observed activities is included. Output estimates are compiled at 3 or 4-digit ISIC level. Proper procedures are not followed for compiling output volume measures (deflated by WPI) and taxes/subsidies on products (deflated by CPI). Household final consumption expenditure is not derived independently. Assessment and validation of intermediate data and statistical outputs. The supply and use framework is not used to investigate discrepancies and make the statistical outputs consistent. Statistical discrepancies are assumed to be part of expenditure on GDP. Revision studies on annual estimates are not prepared, except for changes in the base year.	Periodicity and timeliness exceed GDDS recommendations. Consistency. A reconciliation framework (supply and use tables) is lacking (except in the base year). Discrepancies between the supply and expenditure approaches are adjusted as part of the final household consumption expenditure estimates, because supply sources are considered more reliable than those on the expenditure side. National accounts statistics are generally consistent with the balance of payments (BOP) statistics, except in the case of an adjustment for the underrecording of exports made by the companies of the CFZ and exports of financial services indirectly measured (FISIM); BOP statistics do not include these operations and national accounts do. The coverage of the public sector in the national accounts is more comprehensive than that of the fiscal statistics. Revision policy and practice. The revision cycle follows a regular schedule and is made known to the public. The change of base year does not follow a regular schedule. Only analysis and causes of major revisions are made public.	Data accessibility. National accounts are published in hard copy and on the website, http://www.contraloria.gob.pa. Longer series, more detail, and unpublished data are available upon request. Household final consumption is published only at aggregate level. Dissemination media is not adequate for users (PDF instead Excel). Metadata accessibility. Detailed methodology is available on the CG website. GDDS metadata is updated regularly (December 2005). Assistance to users. Some statistical publications do not provide the address, phone number or e-mail of specific individuals who may be contacted for enquiries. A catalogue of publications and documents is available to users. Prompt and knowledgeable service and support on the national accounts data are available to users through the Center of Statistical Information (CSI) and key personnel are listed in the national accounts methodology. Assistance to users is monitored through data requests. The CG By-Law establishes that all inquiries should be attended within seven business days.

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Table 3a.

Panama: Assessment of Data Quality—Dimensions 2 to 5—National Accounts

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions. National accounts are compiled broadly in accordance with the 1993 SNA. Scope. The 1993 SNA tables and accounts that the ISWGNA specifies as minimum requirements are compiled on a regular basis. Quarterly GDP is compiled at constant prices. The Colón Free Zone (CFZ) is included as part of the economy. Delimitation of production and assets boundaries are in line with the 1993 SNA, with some minor exceptions. Classification/sectorization. The national classification systems of activities and products have a strong correspondence with ISIC Rev. 3 and CPC, respectively. COFOG is used to classify government expenditure by functions and the COICOP is applied for households’ final consumption by purpose. Basis for recording. Although recording broadly accords with the accrual and valuation principles of the 1993 SNA, some government transactions and external transactions are recorded on a cash basis. Surveys do not clarify that the valuation of output and sales should exclude taxes and subsidies on products, and intermediate consumption should exclude deductible VAT. Work in-progress is recorded in the period it is produced. Transactions between establishments are not recorded on a gross basis.	Source data are based on data from census, surveys, and administrative records. Surveys provide adequate data for production accounts. The 2001 business register is updated only with new enterprises, but does not exclude enterprises that have gone out of business. HIES is conducted every 10 years instead of five years. The household survey is only conducted during August. PPI is partially compiled (in some cases prices include sales taxes and margins). Export and import price indexes are being developed. Assessment of source data. Outliers are confirmed with respondents and corrected. Information on sampling and non-sampling errors for surveys is unavailable. Statistical techniques. The base year is outdated (1996). An estimate of non-observed activities is included. Output estimates are compiled at 3 or 4-digit ISIC level. Proper procedures are not followed for compiling output volume measures (deflated by WPI) and taxes/subsidies on products (deflated by CPI). Household final consumption expenditure is not derived independently. Assessment and validation of intermediate data and statistical outputs. The supply and use framework is not used to investigate discrepancies and make the statistical outputs consistent. Statistical discrepancies are assumed to be part of expenditure on GDP. Revision studies on annual estimates are not prepared, except for changes in the base year.	Periodicity and timeliness exceed GDDS recommendations. Consistency. A reconciliation framework (supply and use tables) is lacking (except in the base year). Discrepancies between the supply and expenditure approaches are adjusted as part of the final household consumption expenditure estimates, because supply sources are considered more reliable than those on the expenditure side. National accounts statistics are generally consistent with the balance of payments (BOP) statistics, except in the case of an adjustment for the underrecording of exports made by the companies of the CFZ and exports of financial services indirectly measured (FISIM); BOP statistics do not include these operations and national accounts do. The coverage of the public sector in the national accounts is more comprehensive than that of the fiscal statistics. Revision policy and practice. The revision cycle follows a regular schedule and is made known to the public. The change of base year does not follow a regular schedule. Only analysis and causes of major revisions are made public.	Data accessibility. National accounts are published in hard copy and on the website, http://www.contraloria.gob.pa. Longer series, more detail, and unpublished data are available upon request. Household final consumption is published only at aggregate level. Dissemination media is not adequate for users (PDF instead Excel). Metadata accessibility. Detailed methodology is available on the CG website. GDDS metadata is updated regularly (December 2005). Assistance to users. Some statistical publications do not provide the address, phone number or e-mail of specific individuals who may be contacted for enquiries. A catalogue of publications and documents is available to users. Prompt and knowledgeable service and support on the national accounts data are available to users through the Center of Statistical Information (CSI) and key personnel are listed in the national accounts methodology. Assistance to users is monitored through data requests. The CG By-Law establishes that all inquiries should be attended within seven business days.

Table 3b.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Consumer Price Index

Table 3b.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Consumer Price Index

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions are generally in line with the CPI Manual, 2004. Prices and weights broadly follow the national accounts concepts (1993 SNA) for all monetary consumption expenditure. The level of detail for commodities and services is sufficient for detailed analysis of price movements. Scope. CPI weights only cover urban households. No account is taken of one-person households, nor of households in the lowest and highest deciles of the income distribution. Imputed rent of owner–occupied housing and own–account production of market goods for own final consumption are excluded, which deviates from international standard practices. Classification/sectorization. CPI is classified using the Panamanian version of the COICOP, with departures from the standard COICOP (e.g., tobacco, alcoholic beverages, communications, hotels, and restaurants are not classified in corresponding groups). Basis for recording. Prices and weights are recorded using market or transaction values including discounts only if they are applied for more than a month. Durable items such as automobiles were not recorded on a net basis in the 1997–98 HIES.	Source data are broadly adequate. The sampling frame for the 1997–98 HIES was the 1990 population census, with an adjustment based on updated maps. Only urban areas with 1,500 inhabitants or more were covered. HIESs have been conducted every 10 years instead of every five years. There is a plan to conduct a HIES in 2007–08. A good practice is that purchases in all markets are reflected in CPI weights. Price data are not always collected on the same date every month and during the last week of the month. Assessment of source data. The share of consumption expenditure not covered by the index is more than 40 percent. Validation includes routine checks for extreme values, consistency, and incompleteness. Non- sampling errors are not calculated. Statistical techniques. The use of the geometric mean for price changes is a sound practice. Nonetheless, it is only used for heterogeneous products. Previous price data are imputed for missing prices introducing a possible bias in the index. Changes in product specifications are introduced, but changes in quality are not excluded. New products are introduced only when a major revision is carried out. The current weight reference and price reference periods are not the same. Assessment and validation of intermediate data and outputs. CPI is compared with the WPI. Price data are validated with those from ministries and other surveys. Revision studies. A study on the last major revision (October 2002=100) was carried out. Monthly CPI data are final, but revised in event of errors. Notes on price data adjustments are not stored in the database. Weights are not periodically assessed for bias.	Periodicity and timeliness. Price collection is daily during the first three weeks of the month. The monthly CPI is published 15 days following the reference month, exceeding GDDS standards. Consistency. The CPI is internally consistent by category of expenditure and geographical area. Continuous historical series for Panama and San Miguelito, with October 2002 as the reference base, are available. These data were linked to the previous series that had 1987 as reference base. The CPI is consistent with the price deflator of private final consumption of the national accounts and the WPI. Revision policy and practice. CPI data are considered final. The change in the price reference base does not follow a well-established schedule.	Data accessibility. An executive summary on the CPI, which contains an analysis of current trends that facilitate redissemination in the media, is posted on the CG website and sent to a list of permanent users. Comprehensive statistics are available monthly on the CG website and in a hard- copy publication disseminated quarterly. Although the publication format meets standards, certain relevant series (food items) are not seasonally adjusted. A hard- copy publication of the new series is being reviewed for publication. Time series can be accessed through the CG library and in the publication Panama en Cifras. Unpublished non-confidential data are available to users upon request, but the availability of this information is not publicized. The 2006 dissemination calendar is available on the CG website. Metadata accessibility. Detailed information on CPI methodology is available on the CG website. Metadata have been prepared in the context of GDDS participation. Complete metadata on the 1997–98 HIES have not been published. Assistance to users. Prompt service is available through the CG’s Center of Statistical Information and its library. A catalogue of publications is available to users. The CG website has an e-mail address for inquiries. However, contact points are not publicized in all publications. The CG, jointly with the Ministry of Education, are working to develop a program for promoting a statistical culture.

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Table 3b.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Consumer Price Index

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions are generally in line with the CPI Manual, 2004. Prices and weights broadly follow the national accounts concepts (1993 SNA) for all monetary consumption expenditure. The level of detail for commodities and services is sufficient for detailed analysis of price movements. Scope. CPI weights only cover urban households. No account is taken of one-person households, nor of households in the lowest and highest deciles of the income distribution. Imputed rent of owner–occupied housing and own–account production of market goods for own final consumption are excluded, which deviates from international standard practices. Classification/sectorization. CPI is classified using the Panamanian version of the COICOP, with departures from the standard COICOP (e.g., tobacco, alcoholic beverages, communications, hotels, and restaurants are not classified in corresponding groups). Basis for recording. Prices and weights are recorded using market or transaction values including discounts only if they are applied for more than a month. Durable items such as automobiles were not recorded on a net basis in the 1997–98 HIES.	Source data are broadly adequate. The sampling frame for the 1997–98 HIES was the 1990 population census, with an adjustment based on updated maps. Only urban areas with 1,500 inhabitants or more were covered. HIESs have been conducted every 10 years instead of every five years. There is a plan to conduct a HIES in 2007–08. A good practice is that purchases in all markets are reflected in CPI weights. Price data are not always collected on the same date every month and during the last week of the month. Assessment of source data. The share of consumption expenditure not covered by the index is more than 40 percent. Validation includes routine checks for extreme values, consistency, and incompleteness. Non- sampling errors are not calculated. Statistical techniques. The use of the geometric mean for price changes is a sound practice. Nonetheless, it is only used for heterogeneous products. Previous price data are imputed for missing prices introducing a possible bias in the index. Changes in product specifications are introduced, but changes in quality are not excluded. New products are introduced only when a major revision is carried out. The current weight reference and price reference periods are not the same. Assessment and validation of intermediate data and outputs. CPI is compared with the WPI. Price data are validated with those from ministries and other surveys. Revision studies. A study on the last major revision (October 2002=100) was carried out. Monthly CPI data are final, but revised in event of errors. Notes on price data adjustments are not stored in the database. Weights are not periodically assessed for bias.	Periodicity and timeliness. Price collection is daily during the first three weeks of the month. The monthly CPI is published 15 days following the reference month, exceeding GDDS standards. Consistency. The CPI is internally consistent by category of expenditure and geographical area. Continuous historical series for Panama and San Miguelito, with October 2002 as the reference base, are available. These data were linked to the previous series that had 1987 as reference base. The CPI is consistent with the price deflator of private final consumption of the national accounts and the WPI. Revision policy and practice. CPI data are considered final. The change in the price reference base does not follow a well-established schedule.	Data accessibility. An executive summary on the CPI, which contains an analysis of current trends that facilitate redissemination in the media, is posted on the CG website and sent to a list of permanent users. Comprehensive statistics are available monthly on the CG website and in a hard- copy publication disseminated quarterly. Although the publication format meets standards, certain relevant series (food items) are not seasonally adjusted. A hard- copy publication of the new series is being reviewed for publication. Time series can be accessed through the CG library and in the publication Panama en Cifras. Unpublished non-confidential data are available to users upon request, but the availability of this information is not publicized. The 2006 dissemination calendar is available on the CG website. Metadata accessibility. Detailed information on CPI methodology is available on the CG website. Metadata have been prepared in the context of GDDS participation. Complete metadata on the 1997–98 HIES have not been published. Assistance to users. Prompt service is available through the CG’s Center of Statistical Information and its library. A catalogue of publications is available to users. The CG website has an e-mail address for inquiries. However, contact points are not publicized in all publications. The CG, jointly with the Ministry of Education, are working to develop a program for promoting a statistical culture.

Table 3c.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Government Finance Statistics

Table 3c.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Government Finance Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions. Presentation of GFS follows the GFSM 1986 recommendations. There is no plan to migrate to GFSM 2001. Scope. GFS disseminated by the MEF cover the NFPS, but full, consolidated revenue and expenditure breakdowns are not available. The PCA is not included. Debt statistics are complete. The CG disseminates GFS flows, which are consolidated for the NFPS; no breakdown of transfers is given which allows for consolidations for the general government and the central government. Classification/sectorization. Public debt statistics follow the GFSM 1986. The distinction between external and internal debt is determined on the basis of the place where debt was issued. GFS flow data of the MEF do not show breakdowns of income and expenditure for all NFPS institutions. The GFS should exclude two financial institutions. Basis for recording. The GFSM 1986 recommendations are followed. Exceptions are expenditure data for the CG, which are registered on a commitment basis, and MEF interest expenditures, which include capitalized interests on Inter-American Development Bank loans.	Source data. The source data for NFPS are complete; they are appropriately available and permit the execution of consolidations necessary to compile the different levels of government. The declaration forms are corrected when an error is detected. Assessment of source data. Source data are not periodically assessed. Revisions occur to correct errors or inconsistencies. Statistical techniques. Procedures applied by the MEF follow GFSM 1986. However, the data adjustment and transformation procedures do not include sufficient information on the structure of revenue and expenditure within the NFPS. Assessment and validation of intermediate data and statistical outputs. Regular reconciliation processes are carried out between MEF and CG. Discrepancies are corrected. Any adjustments usually correspond to the replacement of preliminary data for revised data. No intermediate data revisions are made. Revision studies. No data revision studies are carried out by either the MEF or CG. Any detected error is corrected and notes are included in the process sheets in order to report on the used criteria and avoid repeating the error.	Periodicity and timeliness. The MEF and CG meet GDDS recommendations for periodicity and timeliness. Public debt data prepared by the MEF exceed the GDDS recommendations as they are published every month with a lag of less than one month. Consistency. Detailed data compiled by the MEF and CG are consistent with aggregated data presented in the summary tables. Flow data statistics and balances can be reconciled. There is consistency with other statistics because GFS data are used as a source for Balance of Payments and National Accounts. There is no formal reconciliation process with banking statistics. Historical series are not corrected when methodological changes are introduced. Revision policy and practice. There is no revision program for results; this is only done when an error is detected or to replace preliminary for revised data. The preliminary or revised status of the data is clearly identified. The users have access to methodological notes included in the published tables, but there is no systematized process for revisions.	Data accessibility. Statistics are disseminated by the MEF on its website and through press conferences. The information is delivered to all interested parties at the same time. The available data are clear; however, they are not available in spreadsheet form, with the exception of monthly public debt data. No historical database is directly available for users. More detailed information can be obtained by request. Metadata accessibility. There are no documents regarding methodological aspects of the compiled series. The GDDS is continuously updated, but there is no link from the MEF or CG websites. The publications have added detailed information about certain topics and additional information may be requested, but its availability is not advertised. Assistance to users. The MEF and CG offer general points of contact that works well and users receive responses within a short period of time. There are legal regulations for requesting and obtaining historical information. Flow information is disseminated within the sections of different MEF units; no information is given on its existence or on how to access it.

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Table 3c.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Government Finance Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions. Presentation of GFS follows the GFSM 1986 recommendations. There is no plan to migrate to GFSM 2001. Scope. GFS disseminated by the MEF cover the NFPS, but full, consolidated revenue and expenditure breakdowns are not available. The PCA is not included. Debt statistics are complete. The CG disseminates GFS flows, which are consolidated for the NFPS; no breakdown of transfers is given which allows for consolidations for the general government and the central government. Classification/sectorization. Public debt statistics follow the GFSM 1986. The distinction between external and internal debt is determined on the basis of the place where debt was issued. GFS flow data of the MEF do not show breakdowns of income and expenditure for all NFPS institutions. The GFS should exclude two financial institutions. Basis for recording. The GFSM 1986 recommendations are followed. Exceptions are expenditure data for the CG, which are registered on a commitment basis, and MEF interest expenditures, which include capitalized interests on Inter-American Development Bank loans.	Source data. The source data for NFPS are complete; they are appropriately available and permit the execution of consolidations necessary to compile the different levels of government. The declaration forms are corrected when an error is detected. Assessment of source data. Source data are not periodically assessed. Revisions occur to correct errors or inconsistencies. Statistical techniques. Procedures applied by the MEF follow GFSM 1986. However, the data adjustment and transformation procedures do not include sufficient information on the structure of revenue and expenditure within the NFPS. Assessment and validation of intermediate data and statistical outputs. Regular reconciliation processes are carried out between MEF and CG. Discrepancies are corrected. Any adjustments usually correspond to the replacement of preliminary data for revised data. No intermediate data revisions are made. Revision studies. No data revision studies are carried out by either the MEF or CG. Any detected error is corrected and notes are included in the process sheets in order to report on the used criteria and avoid repeating the error.	Periodicity and timeliness. The MEF and CG meet GDDS recommendations for periodicity and timeliness. Public debt data prepared by the MEF exceed the GDDS recommendations as they are published every month with a lag of less than one month. Consistency. Detailed data compiled by the MEF and CG are consistent with aggregated data presented in the summary tables. Flow data statistics and balances can be reconciled. There is consistency with other statistics because GFS data are used as a source for Balance of Payments and National Accounts. There is no formal reconciliation process with banking statistics. Historical series are not corrected when methodological changes are introduced. Revision policy and practice. There is no revision program for results; this is only done when an error is detected or to replace preliminary for revised data. The preliminary or revised status of the data is clearly identified. The users have access to methodological notes included in the published tables, but there is no systematized process for revisions.	Data accessibility. Statistics are disseminated by the MEF on its website and through press conferences. The information is delivered to all interested parties at the same time. The available data are clear; however, they are not available in spreadsheet form, with the exception of monthly public debt data. No historical database is directly available for users. More detailed information can be obtained by request. Metadata accessibility. There are no documents regarding methodological aspects of the compiled series. The GDDS is continuously updated, but there is no link from the MEF or CG websites. The publications have added detailed information about certain topics and additional information may be requested, but its availability is not advertised. Assistance to users. The MEF and CG offer general points of contact that works well and users receive responses within a short period of time. There are legal regulations for requesting and obtaining historical information. Flow information is disseminated within the sections of different MEF units; no information is given on its existence or on how to access it.

Table 3d.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Monetary Statistics

Table 3d.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Monetary Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions. The framework, concepts, and definitions for monetary statistics are not applicable to the statistics on the banking sector disseminated by the SBP. The balance sheet of banks under a general license (those that may conduct financial operations with residents and nonresidents) is the closest account to a depository corporations survey recommended by international statistical standards. Scope. The scope of the data is broadly consistent with the guidelines of the MFSM. Finance companies and saving and credit cooperatives are not covered in the banking sector statistics. However, the relative importance of the institutions not covered is very small. Classification/sectorization. The classification of financial instruments and sectorization systems used for monetary statistics are not applicable to the statistics on the banking sector disseminated by the SBP. Basis for recording is broadly consistent with the MFSM. Market prices are used when possible. Accrual accounting is largely applied, although some interest arrears are recorded off balance sheet. Grossing and netting procedures follow largely the MFSM, although a consolidated statement of the banking sector is not disseminated.	Source data. Source data provide sufficient detail to identify financial instruments and counterpart sectors, and reasonably approximate the definitions, valuation, and time of recording recommended in the MFSM. Although financial derivatives and insurance technical reserves cannot be identified, their relative importance is small. Source data are timely. Assessment of source data. Assessment of source data is sound. Balance sheets are routinely reviewed and banks consulted for clarification when unusual data movements are detected. Statistical techniques. Statistical techniques are generally sound. For the most part the compilation process is automated and electronic compilation procedures minimize compilation errors. Assessment and validation of intermediate data and statistical outputs are conducted routinely. Monthly information is validated against more detailed quarterly data when they are received. Revision studies. Banking sector statistics are not subject to formal revision cycles in the statistical sense as data are deemed final when first released.	Periodicity and timeliness meet recommendations of the GDDS. However, timeliness of disseminated statistics could improve (from two months to one month) as prompt source data are available. Consistency. Monetary statistics are consistent within the dataset and over time. Even if data are consistent over time, with historical series beginning in 1970, no data on the banking sector are readily available in electronic form before 1998. Banking statistics are not reconcilable with other sectoral statistics because their analytical framework does not correspond to monetary analysis. Revision policy and practice. A revisions policy for banking sector statistics is not needed because preliminary data do not exist. The compiler only publishes the data that have been already validated and approved by the corresponding department in the SBP, which is final.	Data accessibility. Presentation of disseminated statistics is generally clear and meaningful. Data are disseminated in PDF format, not in spreadsheets. Although there is no pre- announced release schedule, data are disseminated on the SBP website at regular intervals (monthly and quarterly). Owing to occasional longer than usual delays in the dissemination of the data, some users in the public sector have obtained data (as inputs to their own publications and analysis) before their dissemination. Users can obtain unpublished data on request, although this possibility is not publicized. Metadata accessibility. Methodological notes on banking sector statistics are not available, although the banking law available in the SBP webpage contains descriptions on classification of loans, securities, capital adequacy and other topics. Assistance to users. Assistance to users is provided on request in a timely manner (less than three days) through a contact point available on the SBP website. Catalogues of publications are not needed because the SBP only publishes data on its website.

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Table 3d.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Monetary Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions. The framework, concepts, and definitions for monetary statistics are not applicable to the statistics on the banking sector disseminated by the SBP. The balance sheet of banks under a general license (those that may conduct financial operations with residents and nonresidents) is the closest account to a depository corporations survey recommended by international statistical standards. Scope. The scope of the data is broadly consistent with the guidelines of the MFSM. Finance companies and saving and credit cooperatives are not covered in the banking sector statistics. However, the relative importance of the institutions not covered is very small. Classification/sectorization. The classification of financial instruments and sectorization systems used for monetary statistics are not applicable to the statistics on the banking sector disseminated by the SBP. Basis for recording is broadly consistent with the MFSM. Market prices are used when possible. Accrual accounting is largely applied, although some interest arrears are recorded off balance sheet. Grossing and netting procedures follow largely the MFSM, although a consolidated statement of the banking sector is not disseminated.	Source data. Source data provide sufficient detail to identify financial instruments and counterpart sectors, and reasonably approximate the definitions, valuation, and time of recording recommended in the MFSM. Although financial derivatives and insurance technical reserves cannot be identified, their relative importance is small. Source data are timely. Assessment of source data. Assessment of source data is sound. Balance sheets are routinely reviewed and banks consulted for clarification when unusual data movements are detected. Statistical techniques. Statistical techniques are generally sound. For the most part the compilation process is automated and electronic compilation procedures minimize compilation errors. Assessment and validation of intermediate data and statistical outputs are conducted routinely. Monthly information is validated against more detailed quarterly data when they are received. Revision studies. Banking sector statistics are not subject to formal revision cycles in the statistical sense as data are deemed final when first released.	Periodicity and timeliness meet recommendations of the GDDS. However, timeliness of disseminated statistics could improve (from two months to one month) as prompt source data are available. Consistency. Monetary statistics are consistent within the dataset and over time. Even if data are consistent over time, with historical series beginning in 1970, no data on the banking sector are readily available in electronic form before 1998. Banking statistics are not reconcilable with other sectoral statistics because their analytical framework does not correspond to monetary analysis. Revision policy and practice. A revisions policy for banking sector statistics is not needed because preliminary data do not exist. The compiler only publishes the data that have been already validated and approved by the corresponding department in the SBP, which is final.	Data accessibility. Presentation of disseminated statistics is generally clear and meaningful. Data are disseminated in PDF format, not in spreadsheets. Although there is no pre- announced release schedule, data are disseminated on the SBP website at regular intervals (monthly and quarterly). Owing to occasional longer than usual delays in the dissemination of the data, some users in the public sector have obtained data (as inputs to their own publications and analysis) before their dissemination. Users can obtain unpublished data on request, although this possibility is not publicized. Metadata accessibility. Methodological notes on banking sector statistics are not available, although the banking law available in the SBP webpage contains descriptions on classification of loans, securities, capital adequacy and other topics. Assistance to users. Assistance to users is provided on request in a timely manner (less than three days) through a contact point available on the SBP website. Catalogues of publications are not needed because the SBP only publishes data on its website.

Table 3e.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Balance of Payments Statistics

Table 3e.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Balance of Payments Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions. The CG compiles the balance of payments statistics in broad conformity with the guidelines of BPM5, with the important exception that holdings by residents of government bonds issued abroad are not excluded from the financial account. Scope. Coverage of the free trade zone is insufficient due to unrecorded transactions between free trade zone enterprises. Unrecorded trade is not compiled. Recording of some private sector activities is incomplete such as construction, professional, and merchanting services, as well as compensation of employees and direct investment abroad. Classification/sectorization are broadly in line with BPM5 guidelines. Both analytic and standard presentations of the balance of payments and IIP are available in quarterly and annual publications of the DSC. Basis for recording is mixed. The principle of market valuation is generally used. External debt is recorded at face value when issued, but adjusted to market value when redeemed. Recording is mostly done on an accrual basis; however, interest on external public debt are recorded when paid.	Source data. The composition of data sources (surveys and administrative records) is adequate, although it does not cover some private sector services and financial transactions. Difficulties in source data from the free trade zone do not ensure adequate trade estimates. Assessment of source data. Accuracy of data from surveys is routinely assessed to monitor sampling and non-sampling errors. A range of comprehensive checks for internal consistency are conducted and routine queries are made when large transactions take place. Statistical techniques. Compilation procedures for surveys and administrative records are sound and, in general, consistent with international practices. Reconciliation of quarterly and annual data is done through simple procedures. No comprehensive estimates of border transactions and smuggling are made. Assessment and validation of intermediate data and statistical outputs. Intermediate results are validated only when extreme values are observed. Cross- checks verifications are insufficient with other administrative records available from government agencies. Revision studies. Internal records are kept, but no formal analysis of revisions and their magnitude are conducted.	Periodicity and timeliness of balance of payments and international investment position statistics exceed recommendations of GDDS. Consistency. Data are consistent within the dataset and over a reasonable period of time. Financial transactions are reconciled with changes in the international investment position. Statistics are reconcilable with other statistical sectors, although there are no explanatory notes addressing discrepancies. Revision policy and practice. The revision cycle for balance of payments and international investment position follows a regular schedule, but it is not made known to the public. Users are informed when data are preliminary or revised. No formal analysis of revisions are made public.	Data accessibility. Data access is provided through the CG website and in hard-copy publications. Statistics are released on a pre- announced schedule through a press release at the beginning of the year. The statistics are made available to all users at the same time. No specific reference is made in CG publications to the availability of unpublished sub- aggregates, even though these are available on request. Metadata accessibility. Metadata on balance of payments are available in biannual reports. CG website lacks this information. Working papers or other specialized studies are not disseminated. Assistance to users. Prompt and knowledgeable service and support are available to the users through the Integrated Correspondence System in DSC. CG’s By-Laws regulate that a response to the user should be drafted within seven working days of receipt of the request.

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Table 3e.

Panama: Assessment of Data Quality—Dimensions 2 to 5—Balance of Payments Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions. The CG compiles the balance of payments statistics in broad conformity with the guidelines of BPM5, with the important exception that holdings by residents of government bonds issued abroad are not excluded from the financial account. Scope. Coverage of the free trade zone is insufficient due to unrecorded transactions between free trade zone enterprises. Unrecorded trade is not compiled. Recording of some private sector activities is incomplete such as construction, professional, and merchanting services, as well as compensation of employees and direct investment abroad. Classification/sectorization are broadly in line with BPM5 guidelines. Both analytic and standard presentations of the balance of payments and IIP are available in quarterly and annual publications of the DSC. Basis for recording is mixed. The principle of market valuation is generally used. External debt is recorded at face value when issued, but adjusted to market value when redeemed. Recording is mostly done on an accrual basis; however, interest on external public debt are recorded when paid.	Source data. The composition of data sources (surveys and administrative records) is adequate, although it does not cover some private sector services and financial transactions. Difficulties in source data from the free trade zone do not ensure adequate trade estimates. Assessment of source data. Accuracy of data from surveys is routinely assessed to monitor sampling and non-sampling errors. A range of comprehensive checks for internal consistency are conducted and routine queries are made when large transactions take place. Statistical techniques. Compilation procedures for surveys and administrative records are sound and, in general, consistent with international practices. Reconciliation of quarterly and annual data is done through simple procedures. No comprehensive estimates of border transactions and smuggling are made. Assessment and validation of intermediate data and statistical outputs. Intermediate results are validated only when extreme values are observed. Cross- checks verifications are insufficient with other administrative records available from government agencies. Revision studies. Internal records are kept, but no formal analysis of revisions and their magnitude are conducted.	Periodicity and timeliness of balance of payments and international investment position statistics exceed recommendations of GDDS. Consistency. Data are consistent within the dataset and over a reasonable period of time. Financial transactions are reconciled with changes in the international investment position. Statistics are reconcilable with other statistical sectors, although there are no explanatory notes addressing discrepancies. Revision policy and practice. The revision cycle for balance of payments and international investment position follows a regular schedule, but it is not made known to the public. Users are informed when data are preliminary or revised. No formal analysis of revisions are made public.	Data accessibility. Data access is provided through the CG website and in hard-copy publications. Statistics are released on a pre- announced schedule through a press release at the beginning of the year. The statistics are made available to all users at the same time. No specific reference is made in CG publications to the availability of unpublished sub- aggregates, even though these are available on request. Metadata accessibility. Metadata on balance of payments are available in biannual reports. CG website lacks this information. Working papers or other specialized studies are not disseminated. Assistance to users. Prompt and knowledgeable service and support are available to the users through the Integrated Correspondence System in DSC. CG’s By-Laws regulate that a response to the user should be drafted within seven working days of receipt of the request.

III. Staff’s Recommendations

11. The staff has recommendations based on the review of Panama’s statistical practices, discussions with the data producing agencies, and responses from data users. The broad aim is to increase further Panama’s adherence to internationally accepted statistical practices and, in the staff’s view, enhance the analytical usefulness of Panama’s statistics. In each category below, recommendations are listed from higher to lower priority. Some additional technical suggestions are included in the detailed assessments volume.