National Accounts (Income and Expenditure): Year ended March 2024 Data Collection

Period-specific information This release contains data updates arising from new and updated information. It incorporates National accounts (industry production and investment): Year ended March 2023 | Stats NZ statistics and new and improved information. Quarterly national accounts and annual provisional estimates This release contains updated estimates for the March 2022 and 2023 years, with estimates for these balanced years considered to be of final estimate quality. The release also contains provisional estimates in the capital stock tables for the March 2024 year, which we term the provisional year. This includes gross fixed capital formation, capital stocks, and consumption of fixed capital. We will incorporate updated information in future releases for these provisional year estimates. Other March 2024 year provisional estimates will be released together with the experimental quarterly National accounts (income, saving, assets, and liabilities) in January 2025. Further details about this process are outlined below. The annual estimates of the 2024 provisional year will be published together with the National accounts (income, saving, assets, and liabilities): September 2024 quarter in January 2025. This will include the year 2024 for the consolidated accounts as well as all of the institutional sector accounts. Annual year ended March 2024 provisional estimates for the expenditure measure of GDP and its components are used as benchmarks for the Gross domestic product: September 2024 quarter, due to be released on 19 December 2024. Data updates This release contains updates to annual national accounts estimates arising from incorporating new and updated information: More accurate annual data becoming available from the underlying data sources for the March 2023 year for the first time, such as the low-level financial data that becomes available with the annual enterprise survey. An extra year of balanced national accounts data, with goods and services reconciled up to the March 2023 year. This included upwards revisions to household consumption expenditure. Improvements to production GDP which provided updated numbers for gross operating surplus and mixed income. Annual improvements to balance of payments data (2016-2023). Improvements to capital transfers and government miscellaneous current transfers associated with the North Island weather events. See the Treatment of adverse weather events in January and February 2023 section below for further detail. Correction of our method for balance date adjustments in commercial banking from 2020 onwards. See the Improvements to interest payments and receipts of the banking sector section below for further detail. Revisions to gross fixed capital investment (GFKF), consumption of fixed capital (CFK), and net capital stock (NKS) from source data updates and an asset classification correction. The reconciliation of financial flows, such as interest and dividends payments and receipts, between all sectors to 2023. See the 2024 preview of national accounts improvements for more information on the above changes. Treatment of adverse weather events in January and February 2023 Insurance flows relating to the adverse weather events of January and February 2023 are recorded as capital transfers in our national accounts. While we currently have some initial estimates available in our accounts, we expect these estimates to continue to revise as new and improved data becomes available. We are also reviewing our treatment of government miscellaneous current transfers associated with the cyclone and flooding events with the intention of improving our estimates in future releases. Super-dividends According to the System of National Accounts 2008, super-dividends are dividends significantly in excess of earnings or past dividend payments. These should not be included as primary income in the income and outlay account but should instead be recorded in the financial account as a withdrawal of equity. We are currently reviewing our treatment of super-dividends in our annual and quarterly accounts. This is an ongoing process, and we have chosen to not implement any method improvements at this time. Improvements to interest payments and receipts of the banking sector The annual national accounts are presented on a year-ended-March basis, and we routinely apply balance-date adjustments in cases where our source data (such as the annual enterprise survey) is significantly distorted by annual reporting on non-March-year balance-dates. During this year’s balancing cycle, we found an issue with our method for balance date adjustments in commercial banking, applying our indicator to an incorrect period. We have corrected this issue, and it has led to changes in the timing of interest payments and receipts from 2020 onwards. We have confronted the updated series against data from the RBNZ and these now show closer alignment. Updates to household saving The release includes the first estimate of household saving for the year to March 2023 to incorporate higher quality annual data sources and balanced annual national accounts data. The household saving estimate has revised down by $5,968 million from what was previously published in the National accounts (income, saving, assets, and liabilities): September 2023 quarter, released on 25 January 2024. This release included March year annual tables with the first publication of March 2023 year household saving following the last annual release. Revisions since then predominantly reflect improvements from incorporating balanced annual data for the March 2023 year, but also other updates that have been incorporated in quarterly releases since that time. The main contributors to this revision are: An upwards revision to household consumption expenditure (HCE) means household saving is revised down. For the year to March 2023, incorporating annual data through the supply-use balancing framework added $2.1 billion to the previously published provisional estimate of HCE. The following divisions of expenditure revised up the most: Food and Non-Alcoholic Beverages (up approximately $400 million), strong supply by industry across a wide range of commodities in those HCE classes. Recreation and Culture (up approximately $690 million), from strong supply by industry across a wide range of commodities in those HCE classes. This was offset somewhat by decreases from the travel credits method change implemented in the June quarter macroeconomic releases. See International trade: June 2024 quarter - data sources and methods | Stats NZ for more information. Transport (up approximately $960 million), primarily coming from used motor vehicles. This was introduced as an adjustment during supply use balancing to better align with imports data. Miscellaneous Goods and Services (up $500 million). This was driven by a method change to insurance services made during the year to improve coverage of the indicator. This was further increased by supply use balancing adjustments to better align with annual enterprise survey data. A downwards revision to compensation of employees (COE) reduced household saving by approximately $500 million for the year ended March 2023. Several industries contributed to the total change however, this is largely due to a downwards revision ($690 million) to COE received by EE131 (construction services). This revision is coming from revised annual enterprise survey data. A downwards revision to entrepreneurial income also decreases household saving by the same magnitude. For the year ended March 2023, updates and improvements decreased entrepreneurial income by $2.1 billion from what was published in January 2024. This is largely attributable to less farm income from dairy farming (revised down approximately $1 billion) and sheep, beef, and grain farming (revised down $600 million). These results stem from new data from DairyNZ (replacing estimates based on a provisional indicator) and updated data from the Beef + Lamb New Zealand sheep and beef farm survey. Net non-life insurance premiums data suppression Net non-life insurance premiums include general insurance and health insurance, and represent the total non-life insurance premiums net of the service charge. The service charge is treated as sales output and recorded in the production account. Non-financial business enterprises consist of resident business enterprises that produce goods and non-financial services. Net non-life insurance premiums for this sector do not have a data source, and are instead derived as a residual of all of the other sectors. For the year ended March 2023, incorporating new annual enterprise survey and balance of payments data is creating an unusual movement in this derived series. We have subsequently applied a quality suppression to the year ended March 2023 value. This will be reviewed as part of the next annual balance of payments and national accounts cycle. Revisions to National accounts (industry production and investment) The revisions to National accounts (industry production and investment) result from balancing the production and expenditure estimates of GDP within a supply-and-use framework. Annual national accounts sources and methods (stats.govt.nz) has more information on this. Revisions to balance of payments Balance of payments and international investment position: Year ended 31 March 2024 | Stats NZ: updates to net non-life insurance premiums and claims are included in this release. Revisions to gross fixed capital formation, consumption of fixed capital and net capital stock Updates to gross fixed capital investment (GFKF) reflect new data and other improvements, including those arising from the supply-use balancing process. The following list provides the main updates, by asset type. Other construction. Upwards revisions from 2009 onwards due to a correction to the classification of work-in-progress expenditure on transport infrastructure. These are offset in the supply-use balancing by upwards revisions to the value added of the heavy and civil engineering construction and construction services industries. Residential and non-residential buildings. Updated Quarterly Building Activity survey data in the December 2022 quarter contributes to the downwards revisions in 2022 and 2023. Computer software. Downward revision in 2022 and upward revision in 2023 from the inclusion of updated Information and Communication Technology Supply Survey. Plant, machinery and equipment. Upwards revisions in 2022 and 2023 from updated input data. Transport equipment. Downwards revisions in 2022 and upwards revisions in 2023 from updated input data and updated military plane data. Consumption of fixed capital and net capital stock. The revisions to GFKF mentioned above flow into revisions for consumption of fixed capital and net capital stock. Revisions to national saving from new and improved information National saving revisions summary Year ended March National saving in current price, $(million) Published Nov 2023 Published Nov 2024 2010 5,552 6,012 2011 5,438 5,942 2012 6,791 7,014 2013 6,955 7,367 2014 13,683 13,779 2015 14,249 14,434 2016 17,022 17,088 2017 18,034 18,168 2018 20,145 20,291 2019 16,344 16,356 2020 24,196 24,224 2021 19,829 20,075 2022 16,123 15,101 Revisions to household saving from new and improved information Household saving revisions summary Year ended March Household saving in current price, $(million) Published Nov 2023 Published Nov 2024 2010 800 798 2011 1,905 1,901 2012 2,585 2,578 2013 306 298 2014 -278 -289 2015 -2,610 -2,621 2016 -2,484 -2,495 2017 -2,711 -2,722 2018 -3,275 -3,286 2019 -2,177 -2,189 2020 2,599 2,584 2021 15,107 15,098 2022 5,547 5,109 en-NZ