Finland's Balance of Payments : Compilation methods, sources of information and the time series for 1975 to 1992

Abstract

This study describes the compilation methods and source data for Finland's balance of payments and presents revised time series (starting from 1975) on the balance of payments. It also includes an examination of quality control of basic data and an evaluation of the quality of published balance of payments statistics. As a special topic, we analyse the breakdown by components of changes that have occurred in Finland's net international investment position, including those components that are not part of the regular balance of payments flows (ie valuation changes). Finland's balance of payments compilation methods have been thoroughly revamped in recent years. These changes have been essentially influenced by the lifting of foreign exchange control, which had been completed by the start of the l990s.As a result data collection has been revised so as to rely largely on surveys specifically designed for balance of payments purposes. The quality of Finnish balance of payments statistics has remained high during the period covered in this study. The 'errors and omissions' item stayed almost without exception within internationally accepted limits. Nonetheless, with the onset of the l990s the situation has changed in that it is now increasingly important to focus our attention on fluctuations in securities prices.