Financial accounts statistics

Financial accounts statistics is exceptionally important and one of the most complex statistics. It is part of the integrated system of national accounts, which present financial assets and liabilities by sector over a period of time. Compiling financial accounts statistics is extremely complex, as it involves use of various data sources that are often designed for other statistical purposes and can be set on various methodological bases. All this requires extraordinary effort for proper combination and creation of data sources hierarchy from primary statistics and numerous other data sources.

The usefulness of financial account statistics is immense, as it provides detailed information on the stocks and flows of financial assets and liabilities by sector, their structure by financial instrument, as well as the mutual financial exposure to sectors. Therefore, financial accounts are an important source of information for economic policy makers.

In December 2020, the National Bank for the first time is publishing data on the annual Financial accounts of the Macedonian economy (AFAME). They refer to the balance sheet (stocks) of financial assets and liabilities by financial instrument and sub-instrument for each institutional sector and sub-sector of the national economy, as well as rest of the world. The Financial accounts are prepared on a non-consolidated basis. Stocks represent the value of financial assets held and overdue financial liabilities at the end of the reporting year. The difference represents the net financial worth of the respective sector/sub-sector i.e. total economy. In other words, net financial worth (NFW) equals the difference between total financial assets and total financial liabilities of total economy/sector. If the national economy/sector has a surplus of financial assets, then the NFW is positive, i.e. the economy/sector is a net creditor. If the national economy/sector is short of financial assets, then the NFW is negative, i.e. the economy/sector is a net debtor.

Data is presented in domestic currency (in millions of denars).

         Financial accounts developments

The total Net financial worth (NFW) indicates that in 2020, as in the previous period, the Macedonian economy has a negative net financial position, as a result of a higher level of financial liabilities relative to the level of financial assets. The NFW in 2020 equals Denar 449 billion, which is a widening of Denar 22 billion, i.e. by 5.2%. Regarding the relative indicators, the negative net position in 2020 reached 68.5% of GDP, which is a deepening of 6.6 percentage points compared to the previous year.

In terms of the sectors, in 2020, the households and the rest of the world sector are also net creditors and finance the other sectors in the national economy (the non-financial corporations and the general government), which are net debtors. At the same time, the financial sector has an almost balanced net financial position. Compared to the previous year, the deepened negative NFW reflects the negative NFW of general government and non-financial corporations, partially offset by the improved position of the households sector. Read more ...

Source: National Bank of the Republic of North Macedonia

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