Last week’s release of the 2011 Institutional Sector Accounts has not attracted much attention. The thread on it only generated one (seemingly misplaced) reply. The addition this year of consolidated tabled for the financial accounts is useful and gives this table of debt liabilities for the household, government and NFC sectors.
The impact of netting out intra-sectoral balances is small on the household and government sectors. The consolidation nets out about €45 billion of (domestic intra-company) liabilities in the NFC sector. All liabilities of the NFC sector with the rest of the world are still included so there is still a significant impact of MNCs in the 168% of GDP figure given for the sector.
One notable feature of the loan liabilities of the household sector is the decline that has occurred in the past three years.
In 2011, the net financial wealth of the household sector increased by €3 billion to €120 billion, driven mainly by the reduction in liabilities. The increases in the debts of the government sector go without saying.
The non-financial accounts are equally useful. The government accounts give a cash-based view of the general government sector which is more complete in scope than the Exchequer Accounts. The general government accounts used for the EDP are accrual-based.
Below the fold are the current accounts of the general government sector since 2007. The value of output figure used is based on the inputs used rather than prices as most government output is non-market.
The current cash-deficit of the general government sector is declining (slowly). Here are the capital accounts for the same period.
The largest item in the capital account in recent years has been “other capital transfers” which reflects the direct capital injections into the banks. In the second part of the capital accounts it can be seen that once depreciation of existing capital is accounted for, net capital formation by the government sector in 2011 was just €1.8 billion.