External Statistics

LESSON #4

Central Banks’ Statistics

Post-Graduation in Statistical Systems
2022|2023
 Lesson 4: 26th October 2022

1. Services (cont.)
2. Primary income account

Central Banks’ Statistics

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 Primary Income Account
Main components

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 Primary Income Account
General overview

 Two types of primary income are distinguished:

 Income associated with the production process
 Income associated with the ownership of financial and other
nonproduced assets

 Financial derivatives
 (example) The work, financial assets and natural resources
 Compensation of employees
 Dividends and withdrawals from income of quasi-corporations
 Dividends (gross basis) – the day they are declared? Ex-dividend
date? Date they are settled?

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 Primary Income Account
Types of primary income

 Reinvested earnings - Not distributed, reinvested earnings in the

company (from capital participation – immediate direct investors and
investment funds owners´) implicitly attributed to its shareholders:
Reinvested earnings  Net income - Dividends

 Counterpart in the financial account:

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 Primary Income Account
Types of primary income

 Reinvested earnings (cont.)

Reinvested earnings of direct investment - only recorded when a direct
investment relationship exists, assuming voting rights of 10% or more
Reinvested earnings of investment funds shares - only part of the earnings
of the fund is distributed to participants. The remaining part is considered
to be reinvested earnings in portfolio investment income. However, gains
and losses resulting from the investment in the fund portfolio are excluded.

The counterpart of the registration of reinvested earnings in the current

account is made in the financial account [positive (negative) = investment
(disinvestment)]

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 Primary Income Account
Types of primary income

Example: A Foreign Direct Investment company abroad made a net profit

(loss) of 10. This profit was not sent to its Portuguese direct investor in the
same period

Example: Consider country A with a liability vis-à-vis non-resident in the form

of a loan (120 M€) and pays an annual interest rate of 10%, the interest is paid
every two months

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 Questions, comments ...

João Falcão Silva

jmsilva@novaims.unl.pt | jmfsilva@bportugal.pt
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