National Accounts of Lebanon

Lebanese National AccountsWorkshop on National Accounts

19-21 Dec. 2006, Cairo

Organized by Escwa

Historical Background 1964

• The Lebanese national accounts was first established in the year 1964 by the central administration of statistics under the direction of Mr. Robert Kasparian.

• The model used was similar to the SNA 1993 model adopted by the international organization.

1994• Work in statistical field was frozen till the year 1994 because of the war incidents

in Lebanon.

• The last economic accounts published by the Central Administration of Statistics (CAS) date from 1994-95.

• The CAS publication, entitled “Statement of Economic Accounts”, highlighted the statistical gaps which made it difficult to draw up accurate economic accounts

that cover all aspects of the economy.

1996-1999• The CAS has made great efforts to fill these gaps:

– A census of housing units and establishments having an economic activity in 1996.

– A sampling survey on household living conditions in June 1997, and a survey of household budgets in Beirut and its

suburbs throughout the year 1997. – The Ministry of Agriculture carried out an agricultural

census in 1997 with the assistance of the FAO.– The Ministry of Industry conducted an update for 1998 of

the industrial census originally taken in 1994 with the assistance of the German technical cooperation agency

(GTZ). – The National Employment Office carried out two

employment surveys in 1996 and 1999 with the help of ILO.

2002• The procedure to produce national accounts was delayed

because the central administration of statistics at that time had basic tasks to execute.

• In early 2002, the Lebanese Government assigned a special team in the Ministry of Economy and Trade the task of

compiling the national accounts for year 1997 till 2002 with the technical assistance from the French National Institute of

Statistics and Economic Studies. • The year 1997 was chosen to be the base year because the data

for the year 1997 are sufficiently complete to allow the compilation of the main accounts describing all aspects of the

economic life of the country.• 1997 may be considered a “normal” year – in that economic activity returned to a normal volume after the period of major project launches to rebuild the infrastructure destroyed by the

war, and had not yet felt the effects of the world recession that appeared in subsequent years – and thus can serve as a base

year for the construction of economic accounts.• This team completed its mission in July 2005.

2005

• In December 2005, the H.E. prime minister extended the mission of the team to compile national accounts for the year 2003 till 2005 in the presidency of the council of ministers.

Publications

• Year 1997 issued in year 2003

• Years 1997 till 2002 issued in year 2005

• Year 2003 issued in year 2006

• The publication of year 2004 will be issued hopefully this month.

Current value LBP billion

Goods and services use-resource table (All products)

Note: Use-resource tables are established according to the territorial concept. Consequently imports and consumption do not include household expenses abroad. In the same way, tourists expenses on

the territory are not included in exports but in consumption.

 Nature of flow 2000 2001 2002 2003Intermediate uses 12 347 12 186 12 954 14 157Final consumption 26 603 27 203 29 293 31 176GFCF 5 268 5 314 5 479 5 862Exports 2 675 3 110 3 492 3 788Changes in inventories -160 608 -357 -129Adjustment 0 0 0 0Total uses= resources 46 733 48 421 50 862 54 854Output except Trade 31 862 32 081 34 077 36 275Imports 9 027 10 289 9 698 10 851Taxes/imports 1 939 1 819 2 544 2 726Trade output* 3 905 4 233 4 543 5 002

Total3. 4. Total Final Change

industrconstruction

interm.Con-

sumpt.in

invent.uses

1. Agric. & livestock 195 0 1 222 4 0 12 0 0 0 1 433 2 091 19 274 0 3 8172. Energy & water 16 975 371 23 894 345 12 68 0 2 703 1 905 0 5 0 4 6133. Manufacturing 173 103 2 707 1 623 15 626 232 134 0 5 613 10 972 1 886 2 374 -129 20 7164. Construction 0 0 0 0 0 0 0 0 0 0 0 3 957 0 0 3 9575. Transp. & commun. 0 0 32 0 632 774 340 24 0 1 802 1 938 0 172 0 3 9126. Other services 27 4 122 107 275 399 445 1 227 0 2 606 9 283 0 245 0 12 1347. Trade 0 0 0 0 0 0 0 0 0 0 0 0 718 0 7188 Administration 0 0 0 0 0 0 0 0 0 0 4 988 0 0 0 4 988Total uses 410 1 083 4 455 1 756 1 816 2 155 1 029 1 453 0 14 157 31 176 5 862 3 788 -129 54 854

Value added 1 640 187 3 510 2 201 2 096 9 979 6 699 3 535 0 29 846Output 2 050 1 269 7 965 3 957 3 912 12 134 7 728 4 988 0 44 003Imports 920 1 916 8 015 0 10 851Taxes on imports 75 1 077 1 573 -2 726 0 0Trade margins 771 351 3 162 -4 284 0 0Total resources 3 817 4 613 20 716 3 957 3 912 12 134 718 4 988 0 54 854

Intermediate uses  Final uses

Branch

1. Agric. Livest.

2. Energ. water

5. Transp. comm.

GFCF Exports6. Other serv.

7. Trade

8. Admi-nistrat.

Adj

Goods and services input-output table

Year 2003 current value

LBP billion

Table of territorial corrections

Territorial concept

Expenses of tourists in Lebanon

Expenses of Lebanese

abroad

National concept

Imports 10 851 417 11 268

Exports 3 788 1 199 4 987

Consumption 31 176 -1 199 417 30 394

Note:• Input-output tables are established according to the territorial concept. Consequently imports and consumption do not include household expenses abroad. In the same way,

tourists expenses on the territory are not included in exports but in consumption. The changeover to data according to the national concept is given at the bottom of tables.

• Activities in these tables are homogeneous in the sense that each activity produces a definite group of products and each group of products is produced only by this activity.

Integrated economic accounts of the national economy

The international system of economic accounts (SNA93) considers the establishment of aset of accounts for each of the five categories of agents of the national economy, noted byS.1 and for the rest of the world noted by S.2.

The five categories of agents of the national economy are: - S.11: non-financial enterprises - S.12: financial institutions - S.13: public administrations - S.14: households - S.15: non-profit associations

The level of development of Lebanese national statistics does not allow a correctestablishment of the economic accounts of each of the five agents separately. It is inparticular impossible to break down the operations of production and distribution betweennon-financial corporations and households. It is however possible to estimate the mainelements of the integrated accounts of domestic agents as a whole and those of the rest ofthe world in an approximate way.

The following tables present the integrated accounts of the whole national economy (S.1)and the rest of the world (S.2). These accounts show the main aggregates characterizingthe economic activity during the period 2002-2003.

Accounts 2002 2003 2002 2003I. Production accountP11. Market output 32 001 33 983P12. Non-market output 4 814 4 988D2-D3. Taxes - subsidies /products 4 348 5 032P2. Intermediate consumption 12 954 14 157B1. Gross value added (GDP) 28 209 29 846Total 41 163 44 003 41 163 44 003

B1. GDP 28 209 29 846D2-D3. Taxes - subsidies/products 4 348 5 032 4 348 5 032D41. Interests 6 260 6 724 5 457 5 708 Private sector 2 166 2 471 … … Public sector 4 094 4 253 … …D1+D4. Compensation and other incomes 19 720 20 100 20 222 20 769B5. Balance of primary income (GNI) 27 907 29 499Total 58 236 61 355 58 236 61 355

B5. GNI 27 907 29 499D5. Direct taxes 1 213 1 318 1 213 1 318D61. Social contributions 706 722 706 722D62. Social benefits 1 738 1 655 1 761 1 678D79. Other current transfers 453 470 3 405 5 510B6. Balance of secondary income (GNDI) 30 882 34 562Total 34 992 38 728 34 992 38 728

Uses Resources

II.1. Generation and allocation of primary income account

II.2. Secondary distribution of income account

Accounts 2002 2003 2002 2003

P2. Final consumption 28 556 30 394B8. Gross saving 2 326 4 168Total = GNDI 30 882 34 562 30 882 34 562III. 1 Capital accountB8. Gross saving 2 326 4 168P51. Gross fixed capital formation 5 122 5 733D9. Capital transfers 7 6 338 2 540B9. Balance: net lending/borrowing -2 466 970Total 2 663 6 709 2 663 6 709III. 2 Financial accountB9. Net lending/borrowing -2 466 970F2. Currency and deposits (net) 6 144 12 920 3 789 7 515F3 Securities other than loans 2 089 1 323 6 348 3 738F4. Loans -675 60 -618 137F5. Shares / other equity 98 1 425 603 3 367Total 7 656 15 728 7 656 15 728

II.4. Use of income account

Uses Resources

Integrated accounts of the national economy (S.1)

The various operations carried out between the economic agents or flows arising from the economic activity are broken down into the six following categories or subcategories of accounts: (the numbers are the codes of the international classification of the accounts).

- I. Production account- II.1. Generation and allocation of primary income account- II.2. Secondary distribution of income account - II.4. Use of income account - III.1. Capital account - III.2. Financial account

Evolution of the main economic aggregates 2000-2003 LBP (billion)

Nature of the aggregate 2000 2001 2002 2003

GDP 25 325 25 947 28 209 29 846

+ Net factors’ income 834 303 -302 -346

= GNI 26 160 26 250 27 908 29 499

+ Net current transfers 2 463 2 544 2 974 5 064

=GNDI 28 623 28 795 30 882 34 563

- Final consumption 26 029 26 591 28 556 30 394

= Gross national saving 2 594 2 203 2 325 4 168

+ Net capital transfers 274 450 331 2 534

= Gross disposable saving 2 868 2 653 2 656 6 703

-GFCF 5 108 5 923 5 122 5 733

=Net lending(+)/borrowing(-) -2 240 -3 269 -2 466 970

+Foreign financing 1 803 1 502 4 821 4 434

=Balance of payments -437 -1 767 2 355 5 405

- Gross domestic product (GDP) is the balancing item of the production account of all economic agents

- Gross national income (GNI) is drawn from the allocation of primary income account

- Gross national disposable income (GNDI) is the balancing item of the secondary distribution of income

account- Gross national saving is the balancing item of the use

of disposable income account - Gross disposable saving and net lending/borrowing

are deduced from the capital account- The balancing item of the balance of payments

appears in the financial account under the heading, “Changes of cash and deposits”

Rest of the world accounts and balance of payments

Accounts of the rest of the world (S.2)

Accounts 2002 2003 2002 2003I. Goods and services operations Imports 10 056 11 268Exports 4 586 4 987B11. Trade balance 5 469 6 281Total 10 056 11 268 10 056 11 268

B11. Trade balance 5 469 6 281D1. Compensation of employees 686 788 694 706D41. Interests 944 626 1 747 1 642D4... Other incomes (net) 511 588D62. Social benefits 23 23D79. Other current transfers (net) 2 951 5 041B12. Current account Balance 2 797 1 563Total 7 911 8 629 7 911 8 629

Uses Resources

II. Primary income and current transfers account

Accounts 2002 2003 2002 2003III. 1 Capital account B12. Current account balance 2 797 1 563D9. Capital transfers (net) 331 2 533B9. Balance: net lending/borrowing 2 466 -970Total 2 797 1 563 2 797 1 563III. 2 Financial accountB9. Net lending/borrowing 2 466 -971F2. Currency and deposits (net) 2 355 5 405F3 Securities other than loans 4 259 2 415F4. Loans 57 77F5. Shares / other equity 505 1 942Total 4 821 4 434 4 821 4 434

Uses Resources

The operations carried out with the rest of the world are recorded in four accounts, which release the main

aggregates of the balance of payments:

- I. Goods and services transactions account, the balance being equal to the trade balance.

- II. Primary income and current transfers account, the balance being equal to the current balance.

- III.1 Capital transfers account, the balance being equal to foreign capacity or need for financing.

- III.2 Financial account, the balance being equal to the balance of payments deficit or surplus

Evolution of the various balancing items of the balance of payments 2000-2003

Note: A positive balance in the foreign account represents a deficit for the country, while a

negative balance represents a surplus. Thus, the balance of payments was in deficit in 2000 and 2001, and in surplus in 2002 and 2003.

Nature of balance 2000 2001 2002 2003

Trade balance 5 812 6 567 5 469 6 281

+ Net income and transfers -3 298 -2 847 -2 673 -4 718

= Current balance 2 514 3 719 2 797 1 563

+ Net capital transfers -274 -450 -331 -2 533

= Net lending/borrowing 2 240 3 269 2 466 -970

+ Net financing -1 803 -1 502 -4 821 -4 434

= Balance of payments 437 1 767 -2 355 -5 405

LBP (billion)

For more info:www.pcm.gov.lb

nzantout@pcm.gov.lb

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