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National Accounts Curaçao 2012

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National Accounts Curaao 2012 Central Bureau of Statistics Willemstad, October 2 016

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Colophon Publication Central Bureau of Statistics Section Economic Statistics: R. Dreischor L. Ford D. Martis C. Jager J. Ma habali G. Varlack S. Bomberg Explanatory notes to tables The sum of separate items may not add up to the total due to rounding Data are in millions of Antillean Guilders (mln ANG) unless stated otherwise The codes in tables 12 to 18 refer to the classif ication of transactions and other flows; see also annex II Explanation of symbols: o 0.0 = less than half of the unit chosen o = nil o = no information available o blank = category not applicable Address Central Bureau of Statistics Fort Amsterdam z/n, W illemstad, Curaao Tel. (599 9) 4611031 Fax: (599 9) 461 1696 e mail address: info@cbs.cw Website: www.cbs.cw Copyright Central Bureau of Statistics. The contents of this publication may be quoted, provided that the source is given accurately and clea rly. ISBN: 978 99904 5 033 0

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Na tional Accounts of Curaao 2012 Central Bureau of Statistics, October 2016 Preface National Accounts Curaao offers a source of information for everyone who wishes to be informed about various topics regarding the economic situation of Curaao. The national accounts of Curaao are based on the co ncepts and definitions recommended by the UN and IMF in the System of National Accounts 1993 (SNA1993) as far as the data availability allows it. The system consists of a consistent and flexible set of macro economic accounts, which can be used for economi c analysis (by either local organizations and institutions such as enterprises, universities, students and international organizations as the UN, IMF, Worldbank) and policy purposes. Th contains data for the p eriod 200 6 201 2 and it consists of a compilation of sector accounts for Curaao. Besides t he data series 2006 2012 it gives an analysis of the macro economic situation for Curacao in 2012. This analysis re fers to the Gross Domestic Products, Gross Nationa l Income, Gross National Disposable Income, and Saving. Due to the process of compiling analysis and gathering of business and administrative data from third parties, th e publication has been delayed. A special thanks to all contributors who have prov ided CBS with the necessary data to compile this publication. Drs. S. de Boer, Director Central Bureau of Statistics

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Na tional Accounts of Curaao 2012 Central Bureau of Statistics, October 2016 Contents Preface ................................ ................................ ................................ ................................ .......... i Summary ................................ ................................ ................................ ................................ ...... v 1. Introduction ................................ ................................ ................................ ............................. 1 2. Methodology, concepts, definitions and data sources ................................ ............................. 2 2.1 Introduction ................................ ................................ ................................ .................... 2 2.2 The Sequence of Accounts ................................ ................................ ............................. 3 2.2.1. The Production Accounts ................................ ................................ .. 4 2.2. 2 The Distribut ion and Use of Income Accounts ................................ .. 6 2.2. 3 The Accumulation Accounts ................................ .............................. 8 2.2. 4 The Rest of the World or External Transaction Account ................... 9 2 .3 The si mplified Supply and Use Tables ................................ ................................ ......... 1 0 2. 4 Data sources ................................ ................................ ................................ .................. 11 2.4 .1The primary data sources ................................ ................................ ............ 11 2 .4 .2The secondary data sources ................................ ................................ ........ 12 2. 4 ............... 12 3. Macro economic developments in 2012 ................................ ................................ ............... 13 3.1 Introduction ................................ ................................ ................................ .................. 13 3.2 Gross Domestic Product ................................ ................................ ............................... 13 3.2.1Gross D omestic Product by production approach ................................ ...... 14 3.2.1Gross Domestic Product by expenditure approach ................................ ..... 17 3.2.1Gr oss Domestic Product by income approach ................................ ............ 2 0 3.3 Gross National Income ................................ ................................ ................................ 2 1 3. 4 Gro ss National Disposable Income ................................ ................................ .............. 22 3.5 Gross Saving ................................ ................................ ................................ ................. 22 3.6 Gros s National Income, per capita ................................ ................................ ............... 23 List o f t ables figures and boxes in the text List of tables A: Macro aggregates 2010 2011, Curaao ................................ ................................ .................. v B: Gross Domestic Product, Curaao ................................ ................................ ........................ 1 4 C: Taxes less subsidies on products, Curaao ................................ ................................ ........... 1 6 D: Gross Domestic Product, by expenditure, Curaao ................................ .............................. 1 7 E: Gross National Income, Curaao ................................ ................................ .......................... 2 1 F: Gross National Disposable Income, Curaao ................................ ................................ ........ 22 G: Gross Saving, Curaao ................................ ................................ ................................ .......... 22

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Na tional Accounts of Curaao 2012 Central Bureau of Statistics, October 2016 List of figures Figure 1 : Gross Domestic Product ................................ ................................ ............................. 13 Figure 2: Share by institutional sectors in Gross Value Added ................................ ................. 15 Figure 3: Share by industries in Gross Value Added ................................ ................................ 16 Figure 4: Share in consumption expenditure ................................ ................................ ............. 18 Figure 5: Structure of Gross Domestic Product, by income ................................ ...................... 21 Fig ure 6: Gross National Income per capita ................................ ................................ .............. 2 1 Boxes: Box 1: Gross Domestic Product ................................ ................................ ................................ 20 Attached t ables 1: Total economy, product, income, saving and net lending ................................ ..................... 25 2: Income per capita ................................ ................................ ................................ .................. 25 3: Product, income, saving and net lending by sector ................................ ............................... 26 4: Supply and use summary ................................ ................................ ................................ ....... 27 5: Gross Domestic Product by expenditure ................................ ................................ ............... 27 6: Gross Domestic Product by sector and industry ................................ ................................ .... 28 7: Gross Fixed Capital Formation by sector and industry ................................ ......................... 29 8: Government final consumption expenditure by composition of costs and functions ........... 30 9 : Compensation of employees of the government sector by function ................................ ..... 3 1 10: Taxes on production and imports ................................ ................................ ........................ 32 11: Current taxes on income and wealth ................................ ................................ ................... 32 12: Summary sequence of accounts for non financial corporations ................................ .......... 33 13: Summary sequence of accounts for fin ancial corporations ................................ ................. 35 1 14: Summary sequence of accounts for general government ................................ .................... 37 15: Summary sequence of accounts for social security ................................ ............................. 39 16: Summary sequence of accounts for households and non profit Institutions serving households ................................ ................................ ................................ ........................... 4 1 17: Summary sequence of accounts for the total economy ................................ ....................... 43 18: Summary sequence of accounts for the rest of the world ................................ .................... 45 List of abbreviations ................................ ................................ ................................ ................ 47 Annex 1: Overview of selected concepts and definitions ................................ ................................ ..... 49 II. Classification of tra nsactions and other flows ................................ ................................ ...... 54

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Na tional Accounts of Curaao 2012 Central Bureau of Statistics, October 2016

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Na tional Accounts of Curaao 2012 Central Bureau of Statistics, October 2016 Summary This summary is a compilation of the developments of some macr o aggregates for Curaao in 201 2 compared to 20 1 1 Table A: Macro aggregates 201 1 201 2 Curaao m ln. ANG 2011 2012 Nominal % change Gross Domestic Product market price 5439.3 5604. 7 3.0 Gross National Income 5415.5 5526.9 2.1 Gross National Disposable Income 5369.2 5418.0 0.9 Gross savings 822.3 724.7 11.9 Per capita Gross National Incom e, market prices (ANG) 35904.2 36340.3 1.2 The nominal growth rate of G ross Domestic P roduct is about 3 percent in 2012 In that year a value of ANG 5. 6 billion is reached compared to a value of 5.4 billion in 201 1 The percentage change in 2012 has rema ined almost constant to 2011, in this year the growth rate was also 3 percent. Nominal Gross Domestic Product is Gross Domestic Product evaluated at current market prices. Therefore, nominal GDP will include all of the changes in market prices that have occurred during the current year due to inflation or deflation To calculate the real GDP at market prices the inflation or deflation should have to be excluded. With a nominal growth rate of 3 percent and an inflation of 3 .2 percent in 2012 the real GDP g rowth rate was 0.1 percent This is a drop in comparison with the year before which was 0.6 percent. The de crement of Gross Domestic Product combined with a decrease in the net primary income received from abroad is the main reason for the growth in G ros s National Income in 201 2 The Gross National Income has increased by 2 percent in 201 2 from ANG 5. 4 b illion in 2011 to ANG 5. 5 b illion in 2012 The G ross N ational Disposable Inco m e has in cremented with only 1 percent ( from al most ANG 5.4 b illion in 201 1 to over ANG 5 .4 billion in 2012 ). The main reason for this development is the decrease in the net current transfers from abroad. Gross Saving has de creased by almost 12 percent from ANG 822 million in 201 1 to ANG 725 million in 201 2 Gross National Income per capita has increased by 1 percent in 201 2 due to the fact that the GNI has experienced a stronger growth compared to the population growth. For more information please refer to enclosed tables in this publication (tables 1 18).

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Na tional Accounts of Curaao 2012 1 1. Introdu ction The system of national accounts of Curaao is based on the concepts and definitions recommended in the SNA 19 93 manual as far as the data availability allows it. The definitions mentioned in this publication are based on the SNA manual. The SNA1993 provides a comprehensive accounting framework, which allows the economic data to be compiled and presented in a format that is designed for purposes of economic analysis, decision taking and policy making. Since the accounts are usually compiled for a cou ple of years, they can also be used for analyzing economic developments over time 1 The national accounts publication is largely a publication of tables in which the central framework of the SNA1993 and related analytical tables are presented. As recommen ded by the SNA1993, the central framework in Curaao consists of: Integrated Economic Accounts (IEA) in which the full set of economic accounts of institutional sectors and the rest of the world are presented. The table series 12 to 18 refer to the IEA for Curaao. Supply and Use Tables (SUT) in which the accounts of industries according to kind of economic activity, and the accounts of transactions in goods and services according to type of product are integrated. This publication contains a summarized SUT in tabl e 4. Cross Classification of Industries and Sectors (CCIS ), in which transactions are cross classified by industries and sectors. Table 6 forms part of the CCIS. In this publication the Integrated Economic accounts and a simplified Supply and Use table are being described and analyzed. A description of the methodo logy, concepts, definitions and data sources is given in chapter 2 starting with a description of the integrated economic accounts in paragraph 2.2. Paragraph 2.3 contains a description o f the Supply and Use Tables. In chapter 3 a brief description of the ma croeconomic developments in 2012 is presented. Table series 1, 2, 3, and 6 to 11 refer to the analytical tables, which contain the macro aggregates and their underlying details. The pub lication closes with two annexes. The first annex contains an overview of selected concepts and definitions, while the second annex shows the classification of transactions and other flows. 1 System of National Accounts 1993 manual, page 1

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Na tional Accounts of Curaao 2012 2 2 Methodology, concepts, definitions and data sources 2.1. Introduction The central framework of the System of National Accounts 1993 (SNA1993) of Curaao consists of the integrated economic accounts (IEA), supply and use tables and cross classification of sectors and industries. The IEA is a full set of accounts of resident institutional sectors and the rest of the world. The keywords are: set of accounts and resident institutional sectors. The resident institutional sectors The resident institutional sectors or units distinguished in the System are: th e financial corporations sector including quasi corporations (FC); these are corporations engaged in financial intermediation and in auxiliary financial activities. A quasi corporation is an unincorporated enterprise that functions as a corporation in the sense that it has a complete set of accounts consisting of profit and loss accounts and balance sheets, and must be able to make independent decisions. the non financial corporations sector including quasi corporations (NFC); these include corporations who se principal activity is the production of non financial market goods or non financial services; the general government sector with social security as a sub sector (GOV & SOCSEC), whose principal activity co nsists of: Providing goods and services to the c ommunity and to individual households; Financing the provision of goods and services out of taxation or other income; Redistributing income and wealth by means of transfers; Engaging mostly in non market production. the household sector (HH); this includes not only the persons who engage in consumption but also in production. The production units of the households are the sole proprietorship enterprises and partnerships, which are not quasi corporations. According to the Business Census of 1998 about two th ird of all one man businesses and almost all partnerships are quasi corporations. the non profit institutions serving households sector (NPISH); this includes legal or social entities created for the purpose of producing goods and services. The units that establish, control or finance them are not permitted to make any profits or have any financial gain. The Central Bureau of Statistics uses the same sector classification as mentioned in the SNA1993. However in the presentation of the results the HH secto r and the NPISH sector are grouped together.

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Na tional Accounts of Curaao 2012 3 2.2 The sequence of accounts The whole economic process from production to income, to redistribution of income, consumption and saving to the accumulation of fixed assets and financial assets, to the position o f net worth is recorded for each institutional sector. The term sequence implies that the balancing item of the first account flows to the next account and so on. In general the SNA1993 distinguishes the following accounts 2 : I. Production accou nt II. Distribution and use of income accounts II.1. Primary distribution of income account II.1.1. Generation of income account II.1.2. Allocation of primary income account II.1.2.1 Entrepreneurial income account II.1.2.2 Allocation of othe r primary income account II.2. Secondary distribution of income account II.3. Redistribution of income in kind account II.4. Use of income account II.4.1. Use of disposable income account II.4.2. Use of adjusted disposable income account III. A ccumulation accounts III.1. Capital account III.2. Financial account III.3. Other changes in assets account IV. Balance sheets V. Rest of the world account V.I. External account of goods and services V.II. External account of primary incom e and current transfers V.III. External accumulation accounts V.III.1. Capital account V.III.2. Financial account V.III.3. Other changes in assets account V.IV. External assets and liabilities account Given the available data, the accounts in Curaao consist of account I, account II account III ( except account III.2 and III.3 ), and account V ( except account V.III.2 V.III.3 and V.IV ) In the following paragraphs the main features of the accounts regarding Curaao will be described. 2 Figure 2.3. Synoptic presentation of the accounts, balancing items and main aggregates page 28 System of National Accounts 1993 manual.

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Na tional Accounts of Curaao 2012 4 2.2.1 The Produ ction account 3 The production account of the individual institutional sectors shows output and intermediate consumption of goods and services, with value added as balancing item. The keywords are: output, intermediate consumption and value added. Outpu t Output is divided into: market output, output produced for own final use, and other non market output. Market output Market output is output that is sold at prices that are economically significant or otherwise disposed of on the market or intended f or sale or disposal on the market. Prices are economically significant when they have a significant influence on the amounts the producers are willing to supply and on the amounts purchasers wish to buy, in other words, the prices are determined by the mar ket mechanism. Output produced for own final use This type of output consists of goods or services that are kept for their own final use by the owners of the enterprises in which they are produced. Examples in the case of Curaao are the own account in vestments, housing services produced for own consumption by owner occupiers, and services produced on own account by employing paid domestic help. The output excludes domestic and personal services produced for own consumption within households by the same household. Other non market output Other non market output consists of goods and services produced by the non profit institutions serving households and government sector. The goods and services are supplied free of charge or at prices that are not econ omically significant, to other institutional units or the community. As mentioned in the SNA manual such output may be produced for two reasons: It may be technically impossible to make individuals pay for collective services because their consumption cann ot be monitored or controlled. The production of such services has to be organized collectively by government units and financed out of funds other than receipts from sales, namely taxation or other government incomes; Government units and NPISHs may also produce and supply goods or services to individual households for which they could charge but choose not to do so as a matter of social or economic policy e.g. the provision of education or health services, free or at prices that are not economically signi ficant. 3 System of National Account (SNA)1993

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Na tional Accounts of Curaao 2012 5 Intermediate consumption Intermediate consumption consists of the value of the goods and services that are used as inputs in a production process. It excludes fixed assets whose consumption is recorded as consumption of fixed capital, and labor inp uts. The goods or services may be either transformed or used up by the production process. An example of the first is grain, which may be transformed into flour, which in turn may be transformed into bread. An example of the latter is electricity and most services. The production accounts of the individual institutional sectors are grouped to the production account for the total economy. This account includes, besides aforementioned items, also the financial intermediation services indirectly measured (fis im) and the taxes less subsidies on products. The balancing item is Gross/Net Domestic Product. Financial intermediation services indirectly measured This is equal to the total property income receivable by financial intermediaries minus their total inter est payable, excluding the value of any property income receivable from the investment of their own funds; as such income does not arise from financial intermediation. Taxes A feature of the System is the categorization of taxes and subsidies. The taxes a re divided in taxes on products and other taxes on production. Together they form the taxes on production and imports. The taxes on products in Curaao consist of e.g. import duties, export taxes, excise on beer and liquor. The other taxes on production consist in the case of Curaao mostly of taxes on the ownership or use of land, motor vehicle tax paid for company cars, legal charges and license fees. A category of taxes that is related to income is the category current taxes on income and wealth divide d into taxes on income (wage tax, profit tax, income tax) and the other current taxes on income. In this category the personal use of vehicles is recorded. T he terms direct and indirect taxes are no longer used by the SNA. S ubsidies The subsidies are divi ded into: subsidies on products other subsidies on production A subsidy on a product is a subsidy payable per unit of a good or service. Examples are subsidies to the public transportation, water and was te disposal companies. T he remaining subsidies are the subsidies on production, which resident enterprises may receive as a consequence of engaging in production. Examples of such subsidies mentioned in the SNA are subsidies on payroll or workforce and subsidies to reduce

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Na tional Accounts of Curaao 2012 6 pollution. In the case of Curaao subsidies to market non profit institutions are registered under this heading. Value Added As mentioned before, the balancing item of this account is gross or net value added; for the individual sectors. Gross value added is equal to gross output minus i ntermediate consumption. The difference between gross and net is depreciation or consumption of fixed capital. The production account for the total economy is equal to the sum of the production accounts of the different sectors plus taxes less subsidies o n products. The balancing item is equal to the well known macro aggregate Gross Domestic Product (GDP). Gross Domestic Product (GDP) is equal to: The sum of gross value added of all resident producer units (institutional sectors or, alternatively, industr ies) plus that part (possibly the total) of taxes, less subsidies on products, which is not included in the valuation of output (production approach) or, The sum of the final uses of goods and services (all uses except intermediate consumption) measured in purchasers' prices, less the value of imports of goods and services (expenditure approach) or, The sum of primary incomes distributed by resident producer units (income approach). Net Domestic Product at market prices (NDPmp) is obtained by deducting the consumption of fixed capital from GDP. Neither gross nor net domestic product is a measure of welfare. Domestic product is an indicator of overall production activity. 2.2 2 Distribution and use of income accounts There are four income acco unts, namely the primary distribution of income account, the secondary distribution of income account, the redistribution of income in kind account, and the use of income account. The primary distribution of income account The primary distribution of income account is divided into the generation of income account and the allocation of primary income account. The generation of income account contains data regarding wages and salaries, on production. For the economy as a whole, this account includes all taxes on production and imports and all subsidies. The balancing item is operating surplus. The allocation of primary income account is divided into the entrepreneurial income account a nd the allocation of other primary income account, with the balance of primary incomes as balancing item. In Curaao these accounts are grouped to one account containing information regarding property income divided into interest and

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Na tional Accounts of Curaao 2012 7 the distributed income of corporations, and reinvested earnings on foreign direct investment. For the financial corporations and households sector, this account includes an extra fact tha t the reserves of the insurance companies, which are being invested, in fact belong to the household sector. For the economy as a whole, the balancing item is equal to gross/net national income. Gross National Income (GNI) is equal to GDP less primary in comes payable to non resident units plus primary incomes receivable from non resident units. In other words, GNI is equal to GDP less taxes (less subsidies) on production and imports, compensation of employees and property income payable to the rest of the world plus the corresponding items receivable from the rest of the world. Thus GNI at market prices is the sum of gross primary incomes receivable by resident institutional units/sectors. In contrast to GDP, GNI is not a concept of value added, but a conc ept of income (primary income). Net national income (NNI) is equal to GNI minus consumption of fixed capital. The secondary distribution of income account The secondary distribution of income account contains the previously mentioned current taxes on inco me and wealth and other current transfers. The other current transfers consist of non life insurance premiums and claims and miscellaneous current), family and student grants etc. The balancing item is disposable income for the individual sectors, which is equal to saving in the case of the non financial sector. For the total economy the balancing item is equal to gross/net national disposable income. Gross National Disposable Income is equal to GNI at market prices less current transfers (other than taxe s, less subsidies, on production and imports) payable to non rest of the world. Gross National Disposable Income measures the income available to the nation for final c onsumption and Gross Saving. National Disposable Income is the sum of disposable income of all resident institutional units/sectors. By deducting the consumption of fixed capital from Gross National Disposable Income, Net National Disposable Income is obta ined. The redistribution of income in kind account This account shows the social transfers in kind. These consist of social benefits in kind and transfer of individual non market goods and services. These are provided to resident households by government units, including social security funds, and NPISHs. In the case of Curaao only the transfer of individual non market goods and services are included because of insufficient data regarding the social benefits in kind. The balancing item is the adjusted dis posable income.

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Na tional Accounts of Curaao 2012 8 The use of income account This account is divided into the use of disposable income account and the use of adjusted disposable income account. The use of disposable income account (II.4.1.) shows how disposable income is used for consumpt ion and saving. For the financial corporations sector and household households in fact own the reserves of the private funded pension schemes. The use of adjusted disposable income account (II.4.2.) shows how the adjusted disposable income is used for actual final consumption and saving. Actual final consumption is equal to final consumpti on plus the social transfers in kind. This concept is only valid for the household, government and non profit institutions serving households sector. For the household sector this account also includes the previously mentioned adjustment item. It is im po rtant to note that the saving are equal in both accounts. 2.2.3 The accumulation accounts As mentioned before, in the case of Curaao only the capital account is being compiled, mainly because of lack o f data that is needed to construct the other accoun ts. The capital account includes: Gross fixed capital formation (gfcf) Changes in inventories Acquisitions less disposals of land and other tangible non produced assets Capital transfers of which investment grants The balancing item is net lending/net borrowing both for the individual sectors and for the total economy. A transfer is defined as a transaction in which one institutional unit provides a good, service or asset to another unit without receiving from the latter any good, service or asset in return as counterpart. Transfers may be either current in kind or in cash or capital in kind and in cash. In the case of a capital transfer the ownership of an asset (other than inventories) is transferred, or an asset (other than inventories) is purchas ed or disposed of by one or both parties to the transaction. An example of a capital transfer is an investment grant (in cash). In practice, capital transfers tend to be large, infrequent and irregular. Current transfers consist of all transfers that are n ot transfers of capital. They directly affect the level of disposable income and could influence the consumption of goods or services. Current transfers tend to be comparatively small and are made frequently and/or regularly. Both parties should classify a transfer in the same way.

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Na tional Accounts of Curaao 2012 9 The capital account is the last in the sequence of accounts of resident institutional units for Curaao. No financial accounts (III.2), other changes in the volume of assets account (III.3) and balance sheets (IV) are being comp iled. 2.2 4 The rest of the world account or external transactions account This account refers to the full range of transactions that take place between the total economy and the rest of the world. The rest of the world or external transaction account f or Curaao consists of the external account of goods and services, the external account for primary incomes and current transfers, and the capital account. The external account of goods and services shows the export and import of goods and services. Wit h regard to the external account for primary incomes and current transfers the following transactions are applicable to Curaao: The in and outflow of compensation of employees, The in and outflow of property income; these include only the interest and the total distributed income of corporations and the reinvested earnings on direct foreign investment, The inflow of current taxes on income and wealth; this is related to the profit tax paid by the off shore companies, The in and outflow of other curren t transfers; these are related to the non life insurance premiums and claims, the receipt of development aid for social projects, pensions and student and family grants. Of the several external accumulation accounts only the capital account is being compi led. Of all the transactions of the capital account mentioned in the SNA the investment grants are the main transactions applicable. The investment grants are related to the development aid received for investments. The balancing item of the capital accou nt is net lending/net borrowing.

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Na tional Accounts of Curaao 2012 10 2.3 The simplified Supply and Use Tables (SUT) According to the SNA the supply table provides information concerning the products that are produced by the different industries, the imports by product and adjust ment items in the rows as well in the columns. The use table provides information on the uses of goods and services, and also on the cost structures of the industries. The table contains information regarding: The intermediate use quadrant, which shows in termediate consumption by the same products, and industries in the supply table. The final use quadrant, which shows exports, final consumption expenditure and gross capital formation by product. The uses of value added quadrant, which shows the uses of v alue added such as compensation of employees, taxes less subsidies on production and imports, consumption of fixed capital, and net mixed income and operating surplus by industry. The supply table shows output by sector, industry and product, imports by p roduct and the adjustment items. The use table shows intermediate use by sector, industry and products, exports by product, consumption by sector and product and gross fixed capital formation by sector and product. The cross classification of industries a nd sectors (CCIS) of Curaao contains besides aforementioned information a breakdown of the output, intermediate consumption and value added components by sector. In the case of Curaao the SUT is based on the CCIS. Important classifications applied in t he SUT and CCIS and for purpose of analysis are the classification of industries and the classification of products. The classification of industries used is the International Standard Industrial Classification rev.3 (ISIC rev.3). Corresponding enterprises are grouped into related industries by main activity. In order to combine the industry data to sector data a corresponding table is made of the sector classification and the industry classification. A product classification comparable to the Central Pro duct Classification (CPC) is used. The number of products amounts to 40. The selection of products is based on a research of the products that the industries (at the 4 digit level) produce. These products are combined with the imported products such as th e import of cars, to arrive at a complete product classification. A corresponding table between ISIC and CPC is constructed. In this publication a simplified SUT is presented, showing only total values for the economy.

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Na tional Accounts of Curaao 2012 11 2. 4 The data sources In this para graph an overview is given of the data sources, both primary and secondary data sources that are used to obtain the necessary to for compiling the national accounts. 2. 4 .1. The primary data sources An important data source for national accounts is the ye arly national accounts survey conducted by the Central Bureau of Statistics. The results of this survey provide information about the profit and loss account and the balance sheet. This survey excludes commercial banks, unincorporated government enterprise s, taxis, bus drivers and domestic services. The following data by enterprise can be derived from the survey: Output Intermediate consumption Wages and salaries Profit tax Gross capital formation Depreciation Interest, dividends and retained earnings T he data of corresponding enterprises are grouped to industries to arrive at sample totals. These totals are inflated with a three year average of the number of employees as measured by the labor force sample survey to arrive at the total population. The da ta of corresponding industries are then grouped to arrive at data by sector. All enterprises with 10 or more employees have to cooperate each year with this survey. From the enterprises with less than 10 employees a random sample is taken. Once an enterpr ise is selected, it stays in the sample for four consecutive years. The survey covers about 10 % of all enterprises in the business registry of the Central Bureau of Statistics of Curaao Enterprises with 10 or more employees, which responded well each other enterprises are collected by a total of about 13 interviewers. The survey starts every year in June and enterprise data are requested of the year before. It takes about six months to c ollect all the data after which the processing begins. Part of the processing includes adding the International Standard Industrial Classification codes the different enterprises.

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Na tional Accounts of Curaao 2012 12 All companies selected for the survey are obligated to fill out the survey forms by law. In case of refusal to cooperate the Central Bureau of Statistics has the instruments to take the necessary steps to secure cooperation in the future. 2.4 .2 The secondary data sources al banks, unincorporated government enterprises, taxis, bus drivers and domestic housekeeping activities The data regarding th ese activities are derived from other sources Some of the secondary data sources are: The Central Bank of Curaao and St. Maart en for data regarding the balance of payments, commercial banks and insurance companies The Customs Office, for data regarding imports and exports by product The departments of Finance, for data regarding government data Furthermore administrative data o f the Department of Public Transportation are used for activities of taxis and bus drivers. The data of other surveys are also used, for example the Censu s and Labor Force survey (AKO) for domestic s ervices. 2.4 .3. Processing of the data in Economic Accounts (IEA) f ramework The data from both the primary and secondary data sources are processed in a computerized framework. The Integrated Economic Accounts (IEA) are based on a system of counterpart data in which data for one sector is used for other sectors e.g. wages and salaries paid by the different sectors are automatically set (through formulas) equal to those received by the household sector. For this purpose a system of transaction and sector codes was set up. After the data input i n the pre worksheets, central framework and analytical tables, the data has to be reconciled or balanced This means that supply and use must be equal and net lending / net borrowing from the rest of the world must be equal to the opposite of net lending/net borrowing of the total economy in the Integrated Economic Accounts. Furthermore the different approaches to GDP must amount to the same GDP and the sum of detailed data must be equal to the total e.g. the sum of the data by industry must be equal to that of the sectors. The reconciliation of the IEA is done manual ly.

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Na tional Accounts of Curaao 2012 13 3. Macr o economic developments in 2012 3.1 Introduction This chapter gives a summary of the developments of some macro aggregates for Curaao in 2012 compared to 201 1 In this publ ication the following macro aggregates will be described: Gross Domestic Products (GDP) Gross National Income (GNI) Gross National Disposable Income (GNDI) Gross Saving Gross National Income, per capita (GNI, per capita) 3.2 Gross Domestic Product The Re al Gross Domestic Product (GDP), the value of the goods and services produced by the economy of Curaao less the value of the goods and services used up in production, adjusted for price changes, has declined at an annual rate of 0.1 percent in 2012 (see f igure 1) GDP i ncreased by nominal 3 percent from of ANG 5,439 mln in 201 1 to ANG 5,605 mln in 201 2 GDP can be measured by three approaches: pro duction, expenditure and income. A ll approaches should give the same result The production approach : GDP = Output intermediate consumption (= Gross Va lue A dded) plus taxes less subsidies on products minus fisim The expenditure approach: GDP= final consumption + gross capital formation + Exports of goods an d services imports of goods and services

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Na tional Accounts of Curaao 2012 14 The income approach : GDP = compensation of employees + gross operating surplus of corporations +gross mixed income + taxes less subsidies on products Table B: Gross Domestic Product, Curaao, mln. AN G 2011 2012 % change By Production Gross value added 5033.0 5181.3 2.9 Taxes les subsidies on products 554.9 576.0 3.8 Taxes on products 634.4 653.6 3.0 subsidies on products 79.6 77.6 2.5 Fisim 148.6 152.6 2.7 Gross Domestic Pr oduct, market prices 5439.3 5604. 7 3.0 By expenditure Final consumption expenditure 4546.9 4693.4 3.2 Gross capita l formation 2267.9 2271.3 0.1 of which gross fixed capital formation 1562.2 1710.9 9.5 Exports of goods a nd services 38 63.0 4241.9 9.8 Imports of goods and services 5238.6 5601.9 6.9 Gross Domestic Product, market prices 5439.3 5604. 7 3.0 By income Compensation of employees 3090.0 3278.0 6.1 Wages and salaries 2633.7 2795.6 6.1 Employers' social contrib utions 456.2 482.4 5.7 Taxes less subsidies on production and imports 567.5 587.0 3.4 Consumption of fixed capital 741.0 792.8 7.0 Operating surplus, net 1040.9 946.8 9.0 G ross D omestic P roduct, market price 5439.3 5604. 7 3.0 3.2.1 GDP by pr oduction approach The value of GDP can be seen in both the Production and Generation of Income account As mentioned before GDP by production is the sum of gross value added of all resident producer units (institutional sectors or, alternatively, industrie s) plus that part of taxes, less subsidies on products, which is not included in the valuation of output (production approach) minus Fisim. In the next paragraphs an analysis of each component of GDP by production will be given. Gross Value Added The Gros s value added for the total economy is the total output minus intermediate consumption. The value of total output increased from ANG 9733 mln in 2011 to ANG 10 ,493 mln in 2012, which represents an 8 percent increase. This is also the case for the intermedi ate consumption which value has risen with 13 percent. Consequently, G ross V alue Added increased by percent, from ANG 5 033 mln in 2011 to ANG 5 181 mln in 2012.

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Na tional Accounts of Curaao 2012 15 It is good to mention wh at the contribution is of each instituti ona l sector to Gross Value Added. From figure 2 can be observed that the N on financial corporation sector has the largest share (61%), followed by the Fina ncial corporation sector (15%) The government sector and HH & N PISH sector have a similar share in Gross Value Added of 12 perc ent. A n extended analysis of the value added reveals that the industries with the largest share are: Real estate, renting and business activities (17.4%) Financial intermediation (15 .3 %), Trade (12.9%) and Transport, sto rage and communication (12.3%). This can be observed from figure 3, which also reveals that the industries with the smallest share in Gross Value Added are: Education private (2.4%), Private households (0.9%), and

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Na tional Accounts of Curaao 2012 16 Taxes less subsidies on products Two components have to be taken into account n amely the taxes on products and the subsidies on products Taxes on products have increased by percent, wh ile the subsidies on products have decreased by 2.5 percent From table C i t is observed that import duties excise taxes and sales tax (omzetbelasting) form the major parts in the total taxes on products. In 2012 a less er value of both import duties and e xcises has been registered while the value of sales tax has become more. Beside the hotel room tax which has increased by almost 30 percent in 2012, all other taxes ha ve decremented. Table C: Taxes less subsidies on products, Curaao (mln ANG) 2011 2012 % change Total taxes on production and imports Import duties 182.6 167.4 8.3 Excise on gasoline 67.0 40.9 38.9 Excise on beer 11.3 12.8 13.2 Excise on liquor 12.7 11.4 10.4 Excise on tobacco 10.2 14.2 39.5 Sales tax 311.9 367.2 17.7 Stamp taxes 5.3 5.1 3.7 Property transfer tax 18.3 16.9 7.4 Hotel room tax 9.0 11.6 29.5 Other taxes on products 6.2 6.0 3.4 Total taxes on products 634.4 653.6 3.0 Subsidies on products 79.6 77.6 2.5 Total taxes less subsidies on products 554.9 576.0 3.8 In 2012 the go vernment has subsidized 2.5 percent less in industries as transport, energy, construction and other services. The total subsidies on products have decreased from ANG 80 mln to ANG 78 mln NAf in 2012.

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Na tional Accounts of Curaao 2012 17 Financial intermediation indi rectly measured (fisim) The output of the financial sector is inclusive the fisim. Fisim is output of commercial banks and is calculated as the difference between the interests that banks charge their clients for credit s and the interest that the banks pay clients for deposits. The increase in fisim went fro m 3.1 percent in 2011 to 2.7 percent in 2012. 3.2.2 GDP by expenditure approach Calculating GDP from the expenditure side means one has to sum up the expenditures on final products These expenditure s on final products fall into several categories (see table B and D) : Final consumption expenditures Gross capital formation and Net exports (Exports imports) Table D: G ross Domestic Product by expenditure, at current prices, in mln ANG 2011 2012 % change Final consumption expenditure 4546.9 4693.4 3.2 Gross capital formation 2267.9 2271.3 0.1 Exports of goods and services 3863.0 4241.9 9.8 Less: Imports of goods and services 5238.6 5601.9 6.9 Equals: GROSS DOMESTIC PRODUCT 5439.3 5604.7 3.0 Final consumption expenditure 4546.9 4693.4 3.2 Household & Npish final consumption expenditure 37 31.3 3 876 1 3.9 General government final consumption expenditure 815.6 817.3 0.2 Individual consumption expenditure 419.9 409.4 2.5 Collective consumption expenditure 395.7 407.9 3.1 Gross capital formation 2267.9 2271.3 0.1 Gross fixed capital formation 1562.2 1710.9 9.5 Changes in inventories 705.7 560.4 20.6 Exports of goods and services 3863.0 4 241.9 9.8 Exports of goods 1664.9 1697.1 1.9 Exports of services 2198.1 2544.8 15.8 Less: Imports of goods and services 5238.6 5601.9 6.9 I mports of goods 3815.7 4035.1 5.7 Imports of services 1422.9 1566.8 10.1

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Na tional Accounts of Curaao 2012 18 Final consumptio n e x penditure Final consumption expenditures make up about 80 percent of GDP and can be obtained in two ways: 1. As a sum of household & npish where the major part of their expenditure is not financed by the government, and government consumption expenditure s 2. As the sum of individual and collective consumption Ad1) in 2012 the private and public consumption together was 4 693 mln which represent s a growth of 3.2 percent. The private consumption of household & npish has incremented with almost 4 percent, in c omparison with a drop of almost 3 percent in the year before. T he government consumption expenditure (which equals the value of its intermediate consumption of inputs, compensation of employees, taxes on production and consumption of fixed capital) almost remained constant in that year. The value of government consumption expenditure has grown from ANG 816 mln in 2011 to ANG 817.3 mln in 2012 Ad2) Private consumption of household and npish are individual consumption expenditures. Consumption expenditure s of government are split up in individual and collective consumption. Hence the total individual consumption expenditures are the consumption of household & npish and individual consumption financed by the general government sector. Individual consumption expenditures by households and npish consists among othe r of food, clothing, rents, rents of owner occupiers, goods and services provided for income in kind. Individual consumption by government are the production of servic es by government for the benefit of individual households and the purchase of goods and services by government from other producers which are then passed on to households, either free or at low cost (health and education).

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Na tional Accounts of Curaao 2012 19 From figure 4 it can be observed that the total individual consumption makes up for m o re than 90 percent of total consumption of which 82.6 percent belongs to household & npish and a small nine percent to the government. Collective consumption expenditure yield the purchase of goods an d services provided by government for the nation as a whole. No one can consume more of them than anyone else. Example of collective goods and services are tax collecting, statistics, police and defense, ministr ies of finance, trade, agriculture etc. I n 2012 the c ollective consumption expenditure of the government was about nine percent of total consumption expenditures. Gross capital for mation Gross capital formation or investment consists of gross fixed capital formation and changes in inventories. Gross capital formation has grown with only 0 .1 percent in 2012. The reason for this is that changes in inventories have dropped with almost 21 percent in 2012. Gross fixed capital formation has increased by almost 10 percent in 2012. Gross capital formation can be fu rther broken down in gross capital formation by enterprises and by government Gross capital formation by enterpris es has incre ased by 1 percent, and by government has decreased by 20 percent. Net exports Table 18 shows the External Balance of goods and services. From the point of view of the rest of the world a surplus of net exports of 1360 was recorded in 2012. For Cura ao it means a deficit of net exports of 1360 ; this is due to the fact that Curacao has received less from export earnings than it has paid for import of goods and services from abroad. Exports The value of goods and services that residents of Curacao sold to t he rest of the world has growth to 1 0 percent in 2012. This growth was not as fast as in 201 1 when the growth was 31 percent. In 2012 it was the export of services that has contributed more in the growth of the total export. Its growth was almost 16 perce nt, while the growth in merchandise exports was merely 2 percent ( See table 5) Imports The value of goods and services that Curacao bought from the rest of the world on the other hand, has de celerated when comparing the growth rate of almost 7 percent i n 2011 to the growth rate of almost 12 percent in 2012. Both the imports of merchandise and the imports of services have expanded, though less than the year before. In 2011 the growth of merchandise imports was 12 percent in comparison with 2012 when the g rowth was only half of the growth in 2011.

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Na tional Accounts of Curaao 2012 20 The macroeconomic identity of GDP by expenditure: 3.2.3 GDP by income approach GDP by income approach is a third approach to calculate G DP Its value should be equal to the value of GDP by prod uction and by expenditure approach GDP by income approach is calcul at ed as follows : Compensation of employees Plus Taxes less subsidies on production and imports Plus Consumption of fixed capital Plus Operating surplus, net 4 The component of the GDP by income with the largest share is the compensation of The share of compensation of employees in GDP went up with almost 2 percentage points, from almost 57 to almost 59 percent of GDP (figure 5). The contribution of taxes less subsidies on production in GDP has remained almost constant in 2012. With regard to consumption of fixed capital it can be said that its share in GDP has increased by not even 1 percent. In this year the share of net operating surplus in GDP was 2 percentage points less, from 19 percent to 17 percent in GDP. 4 The category of operating surplus is applied to the whole economy, and therefore may include more than gross corporate profit income. For example, profit income by self employed operators. Operating surplus for the whole economy therefor includes also mixed income Box1 T he macro economic identity of GDP by expenditure C+I+G+ ( X M ) whereby C= private consumption G= government spending I=gross private investment X M = net exports C= private consumption of households = ANG 3,876.1 mln G = government spe nding= consumption and gross capital formation of government = ANG 839.5 mln I = gross private investment= gross capital formation less gross capital formation of government = ANG 2,195.0 mln X M = ANG 1,360 mln GDP = ANG 5,604.7 mln

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Na tional Accounts of Curaao 2012 21 3.3 Gross National Income Gross National Income (GNI) is equal to Gross Domestic Product plus primary i ncome receivable from abroad minus primary income paid to abroad. Table E : Gross National Income (mln ANG) 2011 2012 % change Gross Domestic Product 5439.3 5604. 7 3.0 Primary income received from abroad 197.8 172.4 12.8 Primary income paid to abroad 221.6 250.1 12.9 Gross National Income 5415.5 5526.9 2.1 Primary income received from abroad consist s of compensation of employees received from abroad plus property income received from abroad. Both compensation of employees and property income received from abroad has diminished in 2012, resulting in a decline in the primary income received from abroad (13%). Both the compensation of employees and property income paid to abroad have increased in 2012. Consequently, the primary income paid to a broad has increased by 13 percent, from ANG 222 mln to ANG 250 mln in 2012. As a result Gross National Income ( GNI) has increased by almost 2.1 percent (from ANG 5,4 16 mln. in 2011 to ANG 5, 527 mln. in 2012).

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Na tional Accounts of Curaao 2012 22 3.4 Gross National Disposable Income G ros s National Disposable Income (GNDI) is equal to Gross National Income plus current transfers received from abroad minus current transfers paid to abroad. From table F it is observed that t he GNDI has increased by merely 1 percent in 2012 from 5 369 mln in 2011 to 5 418 mln in 2012. This result s from the fact that both the current transfer received from abroad and the current transfers paid to abroad has declined but as can be observed the fall in current transfers received was faster. Table F : Gross Nat ional Disposable Income (mln ANG) 2011 2012 % change Gross National Income 5415.5 5526.9 2.1 Current transfers received from abroad 526.8 430.2 18.3 Current transfers paid to abroad 573.1 539.1 5.9 Gross National Disposable Income 5369.2 5418.0 0.9 3.5 Gross Saving The balancing item of the use of income account is Saving. In 2012 both the Gross National Disposable Income and Final consumption of the total economy has increased. Final consumption which is being subtracted from the GN DI to calculate Gross S aving has expanded with almost four times the GNDI. Consequently, Gross Saving has decreased by almost 12 percent, from ANG 822 mln in 2011 to ANG 725 mln in 2012. Table G : Gross Saving, C ura ao 2012 2011 2012 % change Gro ss National Disposable Income 5369.2 5418.0 0.9 Final consumption 4546.9 4693.4 3.2 Households & Non profit institutions serving households 3731.3 3876.1 3.9 Government (incl. Social security) 815.6 817.3 0.2 Gross savings 822.3 724.7 11.9

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Na tional Accounts of Curaao 2012 23 3.6 Gross National Income, per capita (GNI per capita) The Gross National Income per capita is equal to the GNI divided by the midyear population 5 Midyear population or mean population is the estimated population size in the middle of the y ear. In 2011 the value of GNI per capita was 35.9 thousand and in 201 2 it was 36.3 thousands (see figure 6 ). In 2012 the growth rate was only 0.1 percentage point smaller than in 2011. This is a result from the fact that both GNI and the population have grown less s ignificant than in the year before. 5 In this publication population estimates a re based on the updated population figures.

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Na tional Accounts of Curaao 2012 24 Tables

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Na tional Accounts of Curaao 2012 47 L ist of abbreviati ons AKO Arbeidskrachtenonderzoek (labor force survey) CBS Central Bureau of Statistics CPC Central Product of Classification CCIS Cross Classification of Industry and Sectors DI Domestic Income FC Financial sector GDP Gross Domes tic Product GFCF Gross Fixed Capital Formation GNDI Gross National Disposable Income GNI Gross National Income GOV Government Horeca H otel, restaurant en caf IMF International Monetair Fonds ISIC International Standard of Industria l Classification mp M arket prices NDP Net Domestic Product NFC Non Financial Corporation NNI Net National Income NPI Non Profit Institutions NPISH Non Profit Institutions Serving Households SNA System of National Accounts SOCSEC S ocial Security SUT Supply and Use Tables UN United Nations

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Na tional Accounts of Curaao 2012 48 Annex

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Na tional Accounts of Curaao 2012 49 Annex I. Overview of selected concepts and definitions 6 Actual final consumption Government actual final consumption is equal to the value of the expenditures on collective services. (art. 9.91) Household actual final consumption consists of the consumption of goods or services acquired by individual households by expenditures or through social transfers in kind, received from government units or non profit institutions serving households NPISHs (art.9.72). Adjustment for the change in net equity of households in pension funds The reserves of private funded pension schemes are treated in the System as being collectively owned by the households with claims on the funds. The payments of pension contributions into the funds and the receipts of pensions by pensioners are, therefore, not transfers between different institutional units. They constitute the acquisition and disposal of financial assets However, this may not accord with the perception of the households concerned, especially pensioners' households, who tend to regard the pensions they receive as income in the form of current transfers. In order to present income information that may be more useful for analyzing the behavior of the households concerned, the payments of pension contributions and the receipts of pensions are therefore recorded as part of the disposable incomes of households (art. 9.14, 9.15). Balancing item A balancing i tem is equal to the total value of the entries on one side of an account minus the total value for the other side. Balancing items are not simply devices introduced to ensure that accounts balance. They contain a great deal of information and include some of the most important macro economic aggregates in the accounts namely, value added/domestic product, operating surplus, disposable income, saving, net lending/net borrowing and current external balance (art.3.64, 3.65). Consumption Consumption is an ac tivity in which institutional units use up goods or services. There are two quite different kinds of consumption. Intermediate consumption consists of inputs into processes of production that are used up within the accounting period. Final consumption cons ists of goods and services used by individual households or the community to satisfy their individual or collective needs or wants (art.1.49). Exports of goods and services Exports of goods and services consist of sales, barter, or gifts or grants, of goo ds and services from resident to non residents (art 14.88) 6 System of National Accounts 1993, Brussels/Luxembourg, NY, Paris, Washington,DC. 1993. Variables are in alphabetical order and the corresponding article numbers from the SNA manual are between brackets.

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Na tional Accounts of Curaao 2012 50 Financial corporations sector This sector consists of all resident corporations and quasi corporations whose principal activity is financial intermediation or facilitating financial intermediatio n. In addition, it includes NPIs engaged in market production of a financial nature (e.g., insurance), including those financed by subscriptions from financial enterprises whose role is to promote and serve the interests of those enterprises (art 4.8). Fi nancial Intermediation services indirectly measured (FISIM) Some financial intermediaries are able to provide services for which they do not charge explicitly by paying or charging different rates of interest to borrowers and lenders (and to different cate gories of borrowers and lenders). They pay lower rates of interest than would otherwise be the case to those who lend them money and charge higher rates of interest to those who borrow from them. The resulting net receipts of interest are used to defray th eir expenses and provide an operating surplus. This scheme of interest rates avoids the need to charge their customers individually for services provided and leads to the pattern of interest rates observed in practice. However, in this situation, the Syste m must use an indirect measure, financial intermediation services indirectly measured (FISIM), of the value of the services for which the intermediaries do not charge explicitly. The total value of FISIM is measured in the System as the total property inc ome receivable by financial intermediaries minus their total interest payable, excluding the value of any property income receivable from the investment of their own funds, as such income does not arise from financial intermediation. Whenever the productio n of output is recorded in the System the use of that output must be explicitly accounted for elsewhere in the System. Hence, FISIM must be recorded as being disposed of in one or more of the following ways -as intermediate consumption by enterprises, as final consumption by households, or as exports to non residents. In principle, the total output should, therefore, be allocated among the various recipients or users of the services for which no explicit charges are made. In practice, however, it may be difficult to find a method of allocating the total output among different users in a way which is conceptually satisfactory from an economic viewpoint and for which the requisite data are also available. Some flexibility has therefore to be accepted in th e way in which the output is allocated. (6.124, 6.125, 6.126) A lot of countries including Curaao prefer to continue to use the convention proposed in the 1968 version of the SNA whereby the whole of the output is recorded as the intermediate consumption of a nominal industry. This convention makes total GDP for the economy as a whole invariant to the size of the estimated output. General government sector This sector consists mainly of central, state and local government units together with social secur ity funds imposed and controlled by those units. In addition, it includes

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Na tional Accounts of Curaao 2012 51 NPIs engaged in non market production that are controlled and mainly financed by government units or social security funds (art.4.9). Gross Domestic Product (GDP) The sum of gross value added of all resident producer units (institutional sectors or, alternatively, industries) plus that part (possibly the total) of taxes, less subsidies on products, which is not included in the valuation of output (production approach) or, The sum o f the final uses of goods and services (all uses except intermediate consumption) measured in purchasers' prices, less the value of imports of goods and services (expenditure approach) or, The sum of primary incomes distributed by resident producer units ( income approach); (art.7.17). Gross fixed capital formation This is the value of acquisitions less disposals of fixed assets. Fixed assets are produced assets (mostly machinery, equipment, buildings or other structures but also including some intangible a ssets) that are used repeatedly or continuously in production over several accounting periods (more than one year); (art.1.49). Gross National Income (GNI) Gross National Income (GNI) is equal to GDP less primary incomes payable to non resident units plus primary incomes receivable from non resident units. In other words, GNI is equal to GDP less taxes (less subsidies) on production and imports, compensation of employees and property income payable to the rest of the world plus the corresponding items rece ivable from the rest of the world. Thus GNI at market prices is the sum of gross primary incomes receivable by resident institutional units/sectors (art. 7.16). Households sector This sector consists of all resident households. These include institutiona l households made up of persons staying in hospitals, retirement homes, convents, prisons, etc. for long periods of time. As already noted, an unincorporated enterprise owned by a household is treated as an integral part of the latter and not as a separate institutional unit, except when the enterprise qualifies as a quasi corporation (art 4.11). Imports of goods and services Imports consist of purchases, barter, or receipts of gifts or grants, of goods and services by resident from non residents (art.14.8 8). Non profit institutions serving households sector This sector consists of all resident NPIs, except those controlled and mainly financed by government that provide non market goods or services to households (art 4.10).

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Na tional Accounts of Curaao 2012 52 Output Output consists only of those goods or services that are produced within an establishment that become available for use outside that establishment. When an enterprise contains more than one establishment, the output of the enterprise is the sum of the outputs of its component es tablishments (art. 6.38). Quasi corporations Quasi corporations are unincorporated enterprises that function as if they were corporations. If they function like corporations, they must keep complete sets of accounts A quasi corporation may be: either an unincorporated enterprise owned by a resident institutional unit that is operated as if it were a separate corporation and whose de facto relationship to its owner is that of a corporation to its shareholders: such an enterprise must, of course, keep a com plete set of accounts; or an unincorporated enterprise owned by a non resident institutional unit that is deemed to be a resident institutional unit because it engages in a significant amount of production in the economic territory over a long or indefinit e period of time ( art. 4.49 t/m 4/52). Residency An institutional unit is resident in a country when it has a center of economic interest in the economic territory of that country. It is said to have a center of economic interest when there exists some l ocation -dwelling, place of production or other premises -within the economic territory on, or from, which it engages, and intends to continue to engage, in economic activities and transactions on a significant scale either indefinitely or over a finite bu t long period of time. In most cases, a long period of time may be interpreted as one year or more, although this is suggested only as a guideline and not as an inflexible rule (art.4.15). Thus, residence is not based on nationality or legal criteria (alth ough it may be similar to the concepts of residence used for exchange control, tax or other purposes in many countries). Some aspects of residence: (a) The residence of individual persons is determined by that of the household of which they form part an d not by their place of work. All members of the same household have the same residence as the household itself, even though they may cross borders to work or otherwise spend periods of time abroad. If they work and reside abroad so long that they acquire a center of economic interest abroad, they cease to be members of their original households; (b) Unincorporated enterprises that are not quasi corporations are not separate institutional units from their owners and, therefore, have the same residence as their owners; (c) Corporations and NPIs may normally be expected to have a center of economic interest in the country in which they are legally constituted and registered. Corporations may be resident in countries different from their shareholders and su bsidiary corporations may be resident in different countries from their parent

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Na tional Accounts of Curaao 2012 53 corporations. When a corporation, or unincorporated enterprise, maintains a branch, office or production site in another country in order to engage in a significant amount of pr oduction over a long period of time but without creating a subsidiary corporation for the purpose, the branch, office or site is considered to be a quasi corporation (i.e., separate institutional unit) resident in the country in which it is located (see pa ragraphs 14.22 to 14.28 of chapter XIV); d) Owners of land and buildings in the economic territory of a country are deemed always to have a center of economic interest in that country, even if they do not engage in other economic activities or transactio ns in the country. All land and buildings are therefore owned by residents (see paragraph 14.14 of chapter XIV).(art. 4.16) Transfers A transfer is defined as a transaction in which one institutional unit provides a good, service or asset to another unit without receiving from the latter any good, service or asset in return as counterpart. Transfers may be either current in kind or in cash or capital in kind and in cash. In the case of a capital transfer the ownership of an asset (other than inventories) is transferred, or an asset (other than inventories) is purchased or disposed of by one or both parties to the transaction. An example of a capital transfer is an investment grant (in cash). In practice, capital transfers tend to be large, infrequent and irregular. Current transfers consist of all transfers that are not transfers of capital. They directly affect the level of disposable income and should influence the consumption of goods or services. Current transfers tend to be comparatively small and are made frequently and/or regularly. Both parties should classify a transfer in the same way (art. 8.27).

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Na tional Accounts of Curaao 2012 54 A nnex II. Classification of selected transactions and other flows 7 1. Transactions in goods and services (products) (P) P.1 Outpu t P.11 Market output P.12 Output for own final use P.13 Other non market output P.2 Intermediate consumption P.3 Final consumption expenditure P.31 Individual consumption expenditure P.32 Collective consumption expenditure P.4 Actual fin al consumption P.41 Actual individual consumption P.42 Actual collective consumption P.5 Gross capital formation P.51 Gross fixed capital formation P.52 Changes in inventories P.6 Exports of goods and services P.61 Exports of goods P.62 E xports of services P.7 Imports of goods and services P.71 Imports of goods P.72 Imports of services 2. Distributive transactions (D) D.1 Compensation of employees D.11 Wages and salaries D.12 Employers' social contributions D.2 Taxes on production and imports D.21 Taxes on products 7 System of National Accounts 1993, Brussels/Luxembourg, NY, Paris, Washington,DC. 1993. Selected transactions ar e those used in the Curaao.

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Na tional Accounts of Curaao 2012 55 D.212 Taxes and duties on imports excluding VAT D.2121 Import duties D.2122 Taxes on imports excluding VAT and duties D.213 Export taxes D.214 Taxes on products, except VAT, import an d export taxes D.29 Other taxes on production D.3 Subsidies D.31 Subsidies on products D.39 Other subsidies on production D.4 Property income D.41 Interest D.42 Distributed income of corporations D.421 Dividends D.43 Reinvested earni ngs on direct foreign investment D.44 Property income attributed to insurance policy holders D.45 Rent D.5 Current taxes on income, wealth, etc. D.51 Taxes on income D.59 Other current taxes D.6 Social contributions and benefits D.61 Social contributions D.611 Actual social contributions D.62 Social benefits other than social transfers in kind D.621 Social security benefits in cash D.7 Other current transfers D.71 Net non life insurance premiums D.72 Non life insurance claim s D.74 Current international cooperation D.75 Miscellaneous current transfers D.8 Adjustment for the change in net equity of households in pension funds D.9 Capital transfers D.91 Capital taxes

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Na tional Accounts of Curaao 2012 56 D.92 Investment grants D.99 Other capital tra nsfers 3. Other accumulation entries (K) K.1 Consumption of fixed capital K.2 Acquisitions less disposals of non produced non financial assets K.21 Acquisitions less disposals of land and other tangible non produced assets K.211 Acquisitions of land and other tangible non produced assets K.212 Disposals of land and other tangible non produced assets