5. Adjustments per sub-system of the national accounts

We distinguish three main systems within the national accounts: the supply and use tables, the sector accounts and the labour accounts. The supply and use tables describe production, consumption and value added per branch of industry. The various expenditure categories are also estimated based on this system: consumption, investments, stockholding, imports and exports. The sector accounts provide insight into all cash flows and all financial assets and liabilities in the Dutch economy. These are divided into the main sectors of households, enterprises, government and other countries and into further sub-sectors of this. Both systems together describe the entire economy and are aligned with each other. What is known as labour accounts is the third main system in which the labour factor is described according to various characteristics.

This chapter first discusses the respective adjustments at industry level. The changes made to final expenditures and sector accounts are then discussed successively. Finally, changes in the labour accounts are then discussed.

5.1 Value added by industries

During the revision, gross domestic product (GDP) was revised upwards by €21.0 billion (see Table 5.1.1). An important part of the adjustment is explained by the upward revision by €17.2 billion of value added (gross, base prices) of all industries collectively. Other adjustments to GDP relate to the adjustment of the balance of product-related taxes and subsidies (+€3.7 billion). This can largely be explained by changes in recording the energy tax credit, as described in Section 4.1 of this publication.

The adjustment to value added of €17.2 billion of all industries collectively is the net total of the adjustments in output (+€66.1 billion) and intermediate consumption (+€48.9 billion).

The adjustment of individual industries’ output and intermediate consumption are in general a consequence of realignment to the levels from the source statistics, the use of new sources, or the use of new methods (see Chapter 3 of this publication). In all industries there are basically two causes for the adjustments, but nowhere is the effect so large that they are mentioned in the description of individual industries below as being a reason for value added adjustment.

First, compared with before the revision, there is improved insight into severance payments granted by companies. Whereas previously these were erroneously partly included in companies’ intermediate consumption, after this revision they are now included in salaries (see Section 5.4.1). This has resulted in the total consumption of all industries together being revised downwards by €3.1 billion and, therefore, to value added being revised upwards by the same amount.

Second, during this revision, the method used to make a distinction between investments in software and intermediate consumption of software was changed (see Section 5.2). The new method has resulted in the total value added of all industries collectively being revised downwards by €4.2 billion.

The final adjustment of value added is the result of a large number of upward and downward adjustments to the underlying industries’ value added. The most important upward adjustments relate to holdings and management consultancies (+€8.4 billion), financial services (+€6.7 billion), renting/leasing of moveable property (+€6.6 billion), the pharmaceutical industry (+€4.5 billion), and the public administration and provision of services to the community as a whole (+€3.0 billion). The biggest downward adjustments occur in real estate activities (-€9.3 billion), healthcare (-€3.2 billion) and the chemical industry (-€2.8 billion). The changes in value added are explained below for all industries where the upward or downward revision is greater than €1.0 billion.

5.1.1 Agriculture

Value added in agriculture was revised upwards by €1.5 billion. Of this, €1.2 billion is a consequence of realignment with agricultural statistics, such as the agricultural census, farm financial data statistics, harvest estimates, dairy and slaughter statistics and agricultural services production statistics.

The remaining €0.3 billion of the adjustment can be explained by the addition of missing units. By comparing the results from agricultural statistics with the data on income of self-employed persons, which is based on income tax returns, and the statistics on corporate finance, which is largely based on data from corporate tax, it became clear during the previous revision that farms were missing from the agricultural census.

This concerns companies that are classified in the agriculture industry in the General Business Register (ABR) but do not actually carry out agricultural activities and are therefore missing from the agricultural census. During the previous revision, the addition of these units resulted in a major adjustment to agriculture’s value added. After repeating the comparison in this revision, value added needed to be revised upwards by a further €0.3 billion. Including these units also improved consistency with the labour accounts.

5.1.2 Manufacturing

Value added of the manufacturing sector was adjusted downwards by €0.7 billion to €95.9 billion, the reason being that some industries within manufacturing show larger positive or negative adjustments. In general, these adjustments can be explained by realignment to the levels from the source statistics, incorporating new insights from further analyses of source data, and correcting irregularities that had appeared in the figures in the years since the previous revision and were carried through to this revision for reasons of continuity.

Value added of the tobacco industry was revised downwards by €1.8 billion. This is a consequence of the downward adjustment of output by €2.9 billion and consumption by €1.1 billion. This adjustment is almost entirely due to changed insights, sources and methods relating to illegal activities with respect to cannabis cultivation (see Section 4.3 of this revision publication and an article regarding estimating the illegal economy).

Value added of the chemical industry was revised downwards by €2.8 billion, mainly due to an upward adjustment of consumption by €3.2 billion. This adjustment is mainly due to alignment with the current levels of the source statistics. In the years between two revisions, the focus is on estimating the correct developments of gross domestic product volumes and the components of this, and less on value levels. In the chemical industry, the price developments of production and consumption are often high, which means that minor deviations in the price of the volume from the source statistics can lead to major deviations in the level of the value from the source statistics.

In the pharmaceutical industry, where value added was revised upwards by €4.5 billion as a consequence of an adjustment to production of +€6.7 billion and consumption of +€2.2 billion, in addition to alignment with the levels from the source statistics, two other causes play a role. First, a component of a large multinational corporation was reclassified from wholesale trade to manufacturing. Second, the reviewed estimate of the illegal economy, particularly the production of synthetic drugs, resulted in an upward revision of €1.5 billion of value added.

For the electrotechnical industry, value added was revised upwards by €1.2 billion. This is partly the consequence of realignment with the source statistics and partly the correction of an error in the figures used for the revision.

Value added of the machinery industry was revised upwards by €1.1 billion as a result of realignment with the levels of the source statistics. The machinery industry has expanded considerably in recent years, which means that minor deviations to the source result in a major deviation over time.

For the other manufacturing branch of industry, value added was revised downwards by €2.4 billion. This is almost entirely explained by the reclassification of sheltered employment facilities to the public administration branch of industry and to the provision of services to the community as a whole.

5.1.3 IT services

The downward adjustment of €2.0 billion in value added of IT services was the result of realignment with the levels of the source statistics. The more recent figures present a better picture of production and consumption. In this branch of industry, output level was reduced by €0.2 billion, while consumption increased by €1.8 billion. This is mainly a consequence of the use of new figures for a large multinational corporation, for which no good picture was available during the previous revision. This corporation has been developing well in recent years and, for this revision, is now at the best possible level.

5.1.4 Financial services

Reclassifications of units have led to adjustments in various financial services industries and in the non-financial holdings branch of industry (part of business services, see Section 5.1.6). Large financial enterprises were broken up into separate units and placed in different branches of industry. This has enabled a more precise picture across the various financial sub-areas and has led to a shift in value added from banks, insurance companies and pension funds to financial support companies and non-financial holding companies.

Due to other adjustments, the banking, insurance companies and pension funds industries’ value added was, however revised upwards.

Value added in banks was revised upwards by €2.5 billion. This adjustment is mainly due to the financial intermediation services indirectly measured (FISIM). These are imputed (fees for) banking services, which are determined by differences between interest flows paid and received. This fee for bank services must be recorded as output in the national accounts.

As these fees are, in practice, implicitly settled via interest receipts and payments these flows cannot be observed directly, which is why the FISIM is used for the banking services fees. During this revision, information was included from DNB’s balance of payments regarding the type of foreign-owned enterprises and institutions that have loans with Dutch banks. It appeared that companies purchase many of these services, and far more than previously thought. Partly because of this, the value of these banking services was revised upwards by €2.7 billion.

Other causes for the adjustments to banks include the above-mentioned reclassifications (€1.0 billion downwards) and an adjustment to the revenues from real estate renting/leasing by investment institutions (€0.5 billion upwards). The latter has resulted in an even bigger fall in output of the real estate renting/leasing branch of industry.

The insurance companies and pension funds branch of industry value added was revised upwards by €1.8 billion, despite a downward adjustment of €1.7 billion due to the above-mentioned reclassifications. The reconnection to the source has led to an upwards adjustment of €2.9 billion in value added of insurance institutions. This largely relates to the downward adjustment of financial support companies following the use of a new source (see below) whose services are purchased by insurance companies.

For pension funds, output was revised upwards by €0.6 billion by including the level of depreciation of capital from national accounts rather than from company accounts in calculating output value. The output value is calculated as a sum of the costs, including depreciation. Depreciation is higher according to the national accounts because the national accounts include depreciation on immaterial assets and because these are based on market value. In company accounts, depreciation is often based on a historic cost price.

For pension funds, output and consumption were revised upwards by €5.5 billion due to improved insights with respect to investment costs of mainly foreign investment funds. These management costs must be passed on to investors in these funds and were previously underestimated. Particularly in 2021, management costs were relatively high compared with other years due to good investment results and the associated performance-based remuneration for managers of investment institutions. As the output of pension funds is determined as a sum of the costs, output increased by the same amount. This means that value added remains unchanged.

Value added for financial support companies was revised upwards by €2.3 billion. The previously mentioned reclassifications resulted in an upward adjustment of €2.4 billion. The GNI action point regarding the trade margin on financial assets (see Section 3.1.1) resulted in a positive adjustment to value added by €1.4 billion. Finally, DNB’s use of a new source for financial intermediaries and financial support companies (see Section 3.2) resulted in a downward adjustment to value added by €1.6 billion. For this revision, value added of this branch of industry was estimated based on employee remuneration.

5.1.5 Real estate activities

Value added of the real estate activities branch of industry was revised downwards by €9.3 billion. Of this, €3.2 billion concerns home ownership. This is almost entirely due to an adjustment in the rental value of owner-occupied homes (residential services). The rest of the adjustment of the real estate activities industry is due to operating real estate activities.

In calculating the gross domestic product, owner-occupiers produce a housing service for themselves. This output of housing services is calculated using what is known as imputed rentals. This is a model-based estimate of the rent that owner-occupiers would pay if the house were to be rented instead of owned. This estimate is produced based on variables such as surface area and region.

The method of calculating imputed rentals was changed during this revision. The current model is based on a larger number of variables than the model used prior to the revision. For instance, more variables from the BAG (Basic Register of Addresses and Buildings) were used to estimate missing rental values. The use of the new method explains almost the entire downward adjustment of €3.2 billion of value added of owner-occupied homes.

The estimate of the private renting/leasing of homes, part of the operating real estate industry, has also been revised downwards. Only a limited proportion of private renting/leasing is observed by means of source statistics, which is why the same new method was used during the revision to estimate value added as was used to estimate owner-occupied homes. This explains some €1 billion of the €6.1 billion downward adjustment of this branch of industry’s value added.

The remaining adjustment of the operating real estate industry is mainly due to the use of new data regarding the operation of commercial buildings. There is also limited direct data available from production statistics to estimate these figures, which is why the estimate is based on the lease payments for commercial buildings in other industries.

Based on new research, it has now become clear that commercial buildings are more often leased from industries other than operating real estate industries than previously assumed. This research is based on new links between several registers: the BAG, General Business Register (ABR) and the national provision LVWOZ, which includes the value under the Real Estate Valuation Act (WOZ) of buildings in the Netherlands.

A higher share of the renting/leasing of commercial buildings by other industries means a reduction in value added of the operating real estate industry. Value added of banks and non-financial holding companies (part of business services) was revised upwards as a consequence of this research.

5.1.6 Business services

Value added of a several of business services industries was revised upwards, namely: holdings and management consultancies (€8.4 billion), research (€1.2 billion), renting/leasing of movable property (€6.6 billion) and temporary employment agencies and job placement services (€1.1 billion).

The upward adjustment of the holdings and management consultancies by €8.4 billion can largely be explained by the use of new data to calculate the output of holding companies from directors and major shareholders. Until now, these holding companies were assumed to have a limited net operating surplus as most profits are paid out to their owners as salaries. In the current revision, corporate tax data from these companies was used to estimate actual output, value added and operating surplus. The resulted in an upward adjustment of value added by €4.9 billion. It should be noted that part of this upward adjustment relates to a downward revision of the real estate renting/leasing and trade industries (see above), since part of the additional output comprises real estate renting/leasing. This was previously attributed to the branch of industry: renting/leasing and trade in real estate.

The remaining upward adjustment of €3.6 billion for holdings and management consultancies is largely attributable to the realignment with the source (the production statistics) and reclassifications of enterprises from, for instance, financial institutions to this branch of industry.

The upward adjustment of €1.2 billion in the added value of the research (research and development) branch of industry is largely due to realignment with the levels from the production statistics. This has resulted in an upward adjustment of output by €1.4 billion, of which €0.4 billion can be explained by improved information regarding the distribution of R&D subsidies across branches of industry.

The added value of renting/leasing of movable property was revised upwards by €6.6 billion. Mainly licences and royalties are used and produced within this branch of industry. Approximately €5 billion of the adjustment can be explained by having a better cash flow picture regarding some Dutch subsidiaries of large multinational corporations. These were previously not included in the figures or were included in a different way. The rest of the adjustment is attributable to realignment with the level of the source.

Value added of temporary employment agencies and job placement services was revised upwards by €1.1 billion. A large proportion of the adjustment is explained by realignment with the source and an improved analysis of source data, including where new forms of secondment or mediation for self-employed persons are concerned. Furthermore, no good distinction could be made between the remuneration of temporary contract workers on the agency’s own payroll and the remuneration of contracted self-employed persons. This is because the remuneration of temporary contract workers should be included in the value added of temporary employment agencies, while the remuneration of self-employed persons should not. Improvements have now been made regarding how this is recorded in the used sources.

5.1.7 Public administration and education

Value added of public administration was revised upwards by €3.0 billion during the revision. Of this adjustment, €2.4 billion is the result of transferring sheltered employment facilities to public administration. In the previous revision, sheltered employment facilities were still recorded as part of manufacturing. Employee remuneration was also revised upwards by €0.8 billion in this branch of industry. This is mainly due to reclassifications of units from other industries to public administration and education, and through an improved estimate of pension contributions (for the latter, see also Section 5.4.1).

For education, value added was revised upwards by €1.5 billion. This adjustment is distributed almost evenly across subsidised education and private education. For subsidised education, the adjustment is almost always due to an upward adjustment in employee remuneration. The revised remuneration can partly be explained by the revised pension contributions and partly by reclassifications of units that, prior to the revision, were not counted under education.

In private education, as of reporting year 2021 and as a consequence of new European directives, new source statistics became available in the form of production statistics (see Section 3.2 of this publication). Estimates for this branch of industry were previously mainly based on labour figures. The use of this new source explains a large proportion of this adjustment. Another part can be explained by several units that were previously counted in other industries but have now been reclassified in private education.

5.1.8 Healthcare

For healthcare, value added was revised downwards by €3.2 billion as a consequence of lower output (-€1.9 billion) and higher intermediate consumption (+€1.3 billion). The majority of these adjustments can be explained by realignment with the levels of the source statistics. For both production as well as value added, this has also led to a shift between the underlying branches of industry within care, namely from healthcare to care and welfare.

Some €0.8 billion of the downward output adjustment relates to subsidies. For the revision, €0.4 billion of subsidies was incorrectly not deducted from output and a further €0.4 billion was incorrectly allocated to the R&D industry instead of to healthcare. The higher intermediate consumption is almost entirely explained by an error in the previous revision (see Section 3.1.1 of this publication). The costs of indirectly imputed banking services were not added to intermediate consumption at that time. This has been corrected in this revision.

5.1.9 Culture, sports and recreation

For industries within culture, sports and recreation, for reporting year 2021 and as a consequence of new European directives, new source statistics in the form of production statistics started to be used as source (see Section 3.2 of this publication). The estimates for these industries were previously mainly based on annual reports, labour figures and VAT declarations. Culture, sports and recreation’s value added was revised upwards by €1.5 billion, partly due to the use of this new source. The largest proportion of this (€1.1 billion) is accounted for by the creative services, arts and entertainment industry.

5.2 Adjustments to final expenditures

The figures for the various final expenditure components were also revised in this revision. In Table 5.2.1, the adjustment of gross domestic product is broken down according to the various components of the final expenditure.

5.2.1 Household consumption incl. NPISH

Household consumption incl. non-profit institutions serving households (NPISHs) was revised upwards by €19.5 billion. A large number of sources are used to estimate household consumption. The most important of these are the annual retail trade production statistics and the five-yearly Budget Study, which was last conducted in 2020. The retail trade production statistics are used together with a several other production statistics to determine the supply available for consumption. The Budget Study is mainly used to determine the distribution of consumption over the various types of goods and services. Realignment with the sources is generally the most important explanation for the adjustment to household consumption, in which the source may differ per component of consumption.

The largest upward adjustment, namely €6.9 billion within household consumption, relates to expenditure on insurance and financial services. This adjustment is mainly due to the alignment of the adjusted output of bank and pension services (see Section 5.1.4).

Expenditure on energy was revised upwards by €3.4 billion. This is mainly due to adjustments in how the energy tax credit is recorded, which means it is no longer netted against consumption. See also Section 4.1 of this revision publication.

Expenditure on means of transport and services was revised upwards by €4.6 billion. This is partly due to imports of used vehicles previously being underestimated. An improved estimate was also made of the consumption value of the personal use of lease vehicles. Furthermore, expenditure on home furnishings and housekeeping was revised upwards (by €3.2 billion), as was information and communication (by €1.3 billion). These adjustments mainly relate to realignment with the Budget Study and the retail trade production statistics.

The upward adjustment of expenditure on recreation and culture (by €1.8 billion) is a consequence of alignment with new production statistics for the culture, sports and recreation industry (see Section 5.1.9).

The upward adjustment of expenditure education services (by €1.3 billion) is also a largely the result of alignment with new production statistics (see Section 5.1.7).

Consumption of own production by non-profit institutions for households (part of other services n.i.e.) was revised upwards by €1.1 billion. This mainly relates to the reclassification of units between market producers and non-market producers (see Section 3.4).

Items revised downwards included expenditure on private renting/leasing and the imputed rental of owner-occupied services (by -€4.1 billion). This was due to a change in the method of calculating the imputed rental (see the description of the adjustment in Section 5.1.5).

The downward adjustment of the consumption of social security (by -€1.3 billion) was the result of realignment with the government and care statistics.

5.2.2 Government consumption

Government consumption was revised upwards by €2.1 billion. Government consumption can be divided into in-kind consumption (consumption purchased from market parties) and non-market production consumption (consumption of goods and services produced by the government itself, such as at municipalities, ministries and other government organisations). Of the adjustment in public consumption, €1.0 billion is attributable to in-kind consumption, with the remaining €1.1 billion relating to non-market production consumption.

The adjustment of consumption in-kind is largely due to the student travel product now being registered as an in-kind social benefit. Student travel products were previously registered as social benefits in cash and formed part of household consumption.

The adjustment of the consumption of non-market production is due to the hundreds of institutions that were reclassified under government in this revision. It was established during the revision that the government has control over these institutions. These units are mainly involved in producing non-market goods and non-market services that are largely consumed by the government itself. In the previous revision of the national accounts, these institutions were still part of non-financial public companies or non-profit institutions for households (see also Section 3.4).

5.2.3 Investments in fixed assets

The total of investments in fixed assets was revised upwards by only €20 million. Some major adjustments were made within the various types of fixed assets, but in total these almost completely offset each other. Most adjustments were the result of realignment with the levels from the source statistics, the use of new methods and the use of new source information, and because the investment survey was expanded to include several new branches of industry.

The largest adjustment involved investment in software. As a consequence of an improved estimation method, this was revised downwards by almost €6 billion. This is due to the use of new source information from the investment survey, supplemented with information from production statistics. The source information from the investment survey first became available during the previous revision, but this was not considered suitable for inclusion in the estimation at that time.

Investment in housing was revised upwards by €2.5 billion, mainly following an upward adjustment of output in the construction sector on which the estimate of investment in residential premises is based.

Investment in R&D was also revised upwards by €2.1 billion as a consequence of realignment with the sources and the use of an improved estimation method. Realignment with the sources relates to the alignment of the offer of R&D services, which was revised upwards (+€2.7 billion), including from the statistics for the research industry (+€1.2 billion, see Section 5.1.6), from imports (+€1.1 billion) and from other branches of industry. Most of this higher supply was allocated to investment, with rest being allocated to exports and research industry consumption. The improved estimation method concerns that of in-house investment by market producers. A profit mark-up of 8 percent of the cost is now applied there whereas, prior to the revision, this was calculated without a profit mark-up. The impact of this is approximately +€0.2 billion.

Another significant adjustment is in computer investment, which was revised upwards by €1.1 billion. This is largely due to investments in data centres, which was previously reported by some respondents under investment in machinery and equipment. This is also the most important explanation for the downward adjustment for the investment in machinery and equipment. Investments in general fixed assets were also revised upwards by €1.3 billion. This is partly due to improved estimations of investments in solar panels and partly through the use of new source information from the investment survey. Since 2021, this survey has been expanded to include the healthcare, private education and culture, sports and recreation industries.

5.2.4 Stock changes

Stock changes were revised upwards by €10.4 billion as a consequence of the use of new source data. During the revision, a correct source file was used for reporting year 2021 to replace a file with incorrect data that was used during the original estimate. This correction explains the stock changes almost entirely. This error was not made in other reporting years.

5.2.5 Imports and exports

The trade balance was revised downwards by €11 billion, from €98 billion to €87 billion. The trade balance of goods was revised downwards by €8.2 billion and that of services by €2.9 billion.

For international trade in services, imports and exports were revised upwards. This is due to the alignment of trade flows with the levels of international trade statistics, which resulted in the import of services being revised upwards by €42.7 billion and the export of services by €39.8 billion. This is largely due to adjustments in imports and exports of royalties and licences and, in the case of imports, also to an adjustment by pension funds in the import of foreign investment fund services (see Section 5.1.4).

For international trade in goods, source statistics were used that are based on the border crossing of goods. In this revision and for the first time, this source statistic was converted in the source section to imports and exports based on the transfer of economic ownership, the concept on which imports and exports in national accounts should be based. This aligns the source statistics more closely with the national accounts system, which requires fewer adjustments to trade import and export totals in the source statistics to match the national accounts concepts.

The €8.2 billion adjustment in the goods trade balance is the result of a downward adjustment of exports by €1.3 billion and an upward adjustment of imports by €6.9 billion. The upward adjustment of imports can partly be explained by the adjustment to the stock changes described in the previous section. The use of incorrect source data on stocks in the original 2021 estimate incorrectly reduced the estimate of goods imports to align with the incorrect data on stocks. This correction was reversed in this revision, resulting in an upward adjustment of goods imports. Another part of the upward adjustment can be explained by the import of second-hand cars (see Section 5.2.1).

The downward adjustment of exports is the balance of an upward adjustment of exports from Dutch output by €23.6 billion and a downward adjustment of re-exports by €24.9 billion. Underlying the import adjustment are a €32.3 billion adjustment of imports for domestic use and the downward adjustment of €25.3 billion of imports that are part of re-exports. This revision saw improvements in identifying the import and export flows associated with Dutch production that takes place abroad. This has led to higher imports and exports related to Dutch production abroad but did not lead to a major revision of the total trade balance.

5.3 Adjustments in the sector accounts

The sector accounts describe the related sub-processes in the economy broken down by sectors. The main sectors are non-financial public companies, financial institutions, government and households5). Both the description of the individual sectors as well as the total of the sectors comprise various policy-relevant key figures. Gross national income (GNI) is used as the foundation for member states’ contributions to the EU. Key figures on the current account balance, credits to the private sector and the external assets within the EU are also used to detect macroeconomic imbalances. The general government balance and government debt are relevant in the framework of European budgetary rules.

This Section first explains key figure adjustments for the total domestic sectors and the Netherlands’ relationship with the rest of the world. This concerns gross national income (GNI), available national income, national savings, the national balance of receivables, current account balance, credits to the private sector and external assets. Various sector-specific key figures are then explained for the sectors government and households.

5.3.1 Adjustments to total domestic sector key figures

5.3.1.1 Gross national income

Gross national income (GNI) equals the sum of GDP and the primary income balance with the rest of the world. The Netherlands’ primary income balance with the rest of the world comprises transactions that are counted as primary income. This includes employee remuneration, taxes and subsidies related to production, and income from assets.

GNI for the 2021 reporting year was revised upwards by €17.9 billion. The adjustment is the result of the upward revision of GDP (explained in Sections 5.1 and 5.2) and by a downward revision of the primary income balance by €3.1 billion.

The following revision changes led to adjustments to the primary income balance with the rest of the world:

Balance of remuneration of employees with the rest of the world (+€1.8 billion)
The adjustment to the balance of employee remuneration comprises an upward adjustment of €1.4 billion of the remuneration received by resident employees from abroad and a downward adjustment of €0.4 billion of the remuneration paid by the Netherlands to non-resident employees. The remuneration received from the rest of the world is adjusted first of all because remuneration received from international organisations based in the Netherlands, e.g. the International Court of Justice, was erroneously not included in the receipts. Within the national accounts, international organisations established in the Netherlands are considered to be part of the rest of the world. This omission was identified in the GNI verification (see Section 3.1.1). Incorporating this in the revision has resulted in an adjustment of €0.5 billion.

The remainder of the adjustment to remuneration received from the rest of the world is due to an additional realignment with the source (which is based on tax returns). A significant part of this adjustment is because the source used for the revision was incorrectly assumed to be remuneration including social contributions. This proved to be incorrect, which is why an estimate of the missing social contributions was added during this revision.

Balance of income from assets with the rest of the world (-€5.2 billion)
The balance of income from assets with the rest of the world was revised downwards by €5.2 billion. Underlying this are several adjustments that largely cancel each other out at the macro level. The most important adjustments are discussed below.

The balance of interest paid to and received from the rest of the world was revised downwards by €4.5 billion. Of this, €2.9 billion was the result of an adjustment to imputed bank services. Interest includes an implicit fee for financial services. This fee is included in the sources as interest, but is booked as output and use of a service in the national accounts. An adjustment to the bank service therefore always results in an inverse adjustment in interest. The part of interest flows that are recorded as imports and exports of a service was revised by €2.9 billion. This revision is described in more detail in Section 5.1.4. As imports and exports of banking services are counted against the balance of interest, the impact of adjusting bank services according to GNI is much lower than the impact on GDP.

The remaining adjustments to the balance of paid and received interest are mainly a consequence of a mix of the use of current source information and new sources. A large proportion of these adjustments (-€2.4 billion) is accounted for by the financial institutions sector and intra-group lenders. This adjustment has a contra entry in profits on foreign direct investment and therefore has no impact on GNI.

The captive financial institutions sector’s balance of received and paid profits from the rest of the world was revised downwards by €1.4 billion. Excluding the contra entry for interest mentioned in the previous paragraph, the downward revision was €3.8 billion. This largely concerns (-€3.6 billion) adjustments at financial holding companies with Dutch subsidiaries. An extensive analysis has actually shown that part of the upward adjustment in value added of non-financial corporations (NFCs) (see Section 5.1) is accounted for by foreign-owned enterprises through such financial holding companies. These profits are allocated to foreign shareholders through financial holding companies, which reduces the balance of profits received and paid from the rest of the world.

The use of DNB’s new sources for the other financial intermediary and financial support company sectors has resulted in a downward adjustment of the balance of income from assets with other countries. The balance of profits received from abroad and distributed abroad was revised downwards by €1.1 billion for these sectors combined.

Income paid by the Netherlands to other countries for foreign-owned Dutch real estate was revised downwards by €1.8 billion. The return on foreign real estate was estimated based on return rates on domestic real estate. This is in line with the lower revenues from the real estate activities industry that flow from this revision. This is described in Section 5.1.5. The estimate of the volume of foreign-owned real estate was also revised downwards based on land registry data on the purchase and sale of real estate by foreign-owned enterprises.

The income that residents receive from holiday homes abroad was revised downwards by €0.9 billion. This income is determined on the basis of information from the tax authorities on foreign real estate in Dutch ownership. The downward revision in income is partly due to the costs incurred in maintaining these holiday homes being estimated higher, based on improved information on the value of these holiday homes.

Dividends received from foreign investment funds were revised upwards by €0.7 billion due to improved reporting to DNB of gross dividends paid by investment funds. Previously, in the reports, taxes paid were incorrectly already netted against dividends received. As the dividend received is part of the primary income and the tax paid is not, this grossing up causes an upward revision of the balance of income from assets.

5.3.1.2 Disposable national income (gross)

Disposable national income is the sum of gross national income (primary income) and income from redistribution transactions (secondary income). The latter category includes taxes on income and assets, social contributions and benefits and other current transfers.

The gross disposable national income was adjusted upwards by €15.9 billion. Besides the €17.9 billion GNI revision, this resulted in a downward adjustment of €1.9 billion on the Netherlands’ redistribution transactions with the rest of the world. The adjustment is mainly the result of the change with respect to free shipments in the import and export of goods.

In the international goods trade statistic, enterprises record whether shipments are paid or free of charge. Free shipments take place, for example, when shipping medicines and relief goods to countries in which a humanitarian disaster has occurred, or in the event free test shipments of goods. Such free shipments are recorded in the national accounts as transfers of income to the receiving sector, with imports or exports fees being paid by this sector. This costs the receiving party nothing on balance, but the shipment is still registered in the national accounts.

However, research showed that the amounts reported are not actual free shipments, but imports and exports that are simply paid for. Both paid and received current transfers associated with these shipments have therefore been removed. The net impact of this on national disposable income is -€1.5 billion.

5.3.1.3 National savings (gross)

The part of national disposable income that is not used for consumption is counted as national savings. National savings were revised downwards by €5.7 billion. This is considerably lower than the adjustment in disposable income (+€15.9 billion). This is mainly due to an upward adjustment of household consumption by €19.3 billion. When consumption increases there is less is available for savings. Government consumption was also revised upwards by €2.1 billion. Household and government consumption adjustments are detailed in Sections 5.2.1 and 5.2.2.

5.3.1.4 National net lending or net borrowing (balance of receivables)

The national balance of receivables is the balance of funds and expenditure on the current account and capital account. The national balance of receivables was revised downwards by €16.4 billion. As well as the downward adjustment of national savings by €5.7 billion, this was the result of a downward adjustment of inventory movements by €10.4 billion (see Section 5.2.4).

5.3.1.5 Current account balance

The current account balance is an indicator of macroeconomic imbalances in the macroeconomic imbalances procedure (MIP). The MIP verification as described in Section 3.1.3 largely focuses on this variable. The balance on the current account was adjusted downwards by €16.2 billion to €89.3 billion. The adjustment is mainly a consequence of a downward adjustment of government debt of €11.1 billion. This revision is described in more detail in Section 5.2.5. In addition, the primary income and redistributive transaction adjustments (explained in earlier items) together resulted in a downward revision of €5.0 billion.

5.3.1.6 Credits to the private sector

Credits to the private sector was adjusted upwards by 22.8 percentage point (€250 billion) to 246.6 percent GDP (€2,198 billion). The debts of units in the non-financial corporations (NFCs)) sector were revised upwards by €149 billion and those of the households sector by €101 billion.

Over €83 billion of debt adjustment for non-financial corporations (NFCs) concerned loans from foreign entities with a direct investment relationship, or loans from parent, subsidiary or sister companies. This is partly due to reclassifications, which resulted in units being transferred (both to and from) the financial institutions sector and intra-group lenders. As financial institutions are not included when determining credit to the private sector, this directly affects this key figure. Another part is due to the recalibration of the updated Business Finance Statistics (see Section 3.2).

Debt adjustment for the non-financial corporations (NFCs) sector also concerned €73 billion of domestic loans from financial institutions and intra-group lenders. These are loans between an operating company and a company’s holding company. According to international guidelines, holding companies are classified as financial institutions, while the operating companies are considered non-financial corporations (NFCs). In this way, internal corporate loans count towards private sector debt. This adjustment itself was a consequence of research regarding separating these holding companies from the operating company. This is described in more detail in Section 3.4.

Household debt to financial institutions and intra-group lenders and to non-financial corporations (NFCs) was revised upwards by €90 billion. These are entities such as holding companies in which households have a substantial interest (including as owner-manager). Households borrow money from these companies for tax purposes instead of having this paid out as dividends.

Debt at these types of companies, of which assets and liabilities were previously missing from the national accounts, has been estimated for the first time based on these companies’ corporate tax returns (see also Section 3.2). If no production takes place, these types of enterprises that have relatively large balance sheets are classified as financial institutions and intra-group lenders. When production does take place, these enterprises are included in the non-financial corporations (NFCs) sector.

Increased household debt is offset by an increase in household assets, in the form of participations in these companies.

5.3.1.7 External assets

External assets, or net receivables from the Netherlands, was adjusted downwards by €181 billion to €632 billion. The balance comprises Dutch claims (assets) on other countries, which were revised upwards by €146 billion to €9,809 billion, as well as the Netherlands’ debts (liabilities) to other countries, which were revised upwards by €326 billion to €9,177 billion. The main adjustments are explained below.

New and improved DNB sources on the issuance and holding of securities (MSR and CSDB, see Section 3.2) show that Dutch entities have issued more debt securities than previously estimated, and that a large part of these debt securities are foreign-owned. Foreign-owned debt securities was revised upwards by €251 billion. Much of this (€108 billion) is due to intra-group financial institutions and lenders that were not previously included in the national accounts. These debts are matched by equally large receivables from the rest of the world, mostly intra-group loans. This means that for these newly included enterprises, there is no impact on external assets. This results in a downward revision to the external assets for debt securities of €143 billion.

The balance of receivables and debts of other types of securities has also been reassessed, leading to smaller, upward adjustments to external assets. These include listed shares (up €10 billion), participations in investment institutions (up €27 billion) and other holdings (up €25 billion). Together, this results in an upward revision of €62 billion.

The balance of intra-group loans issued by non-financial corporations (NFCs) to other countries and the borrowings from the rest of the world was revised downwards by €67 billion. This is mainly due to non-financial corporations (NFCs) increasing their borrowing from the rest of the world, as described in Section 5.3.1.6. For the other sectors, realignment with partly new sources follows a downward revision to the balance of intra-group issued loans and borrowings of €49 billion. However, this includes the previously mentioned adjustment for loans issued by financial institutions and intra-group lenders of €108 billion. As described in the previous paragraph, this is offset against the issued debt securities and should therefore be disregarded. For the other sectors, there remains a downward revision to the external assets of €158 billion.

The opposite effect can be seen for non-group loans. Realignment to partly new sources showed that Dutch entities issued more out-of-group loans to foreign countries than previously estimated, and actually took on less of this type of debt abroad. This has led to an upward revision of external assets of €105 billion.

The new sources therefore show that the balance of issued loans and borrowings with the rest of the world has been revised upwards for intra-group and downwards for extra-group loans. The balance of loans and borrowings with the rest of the world in total (excluding the adjustment for newly listed financial institutions and intra-group lenders) was revised upwards by €120 billion. This resulted in a downward revision of the external assets by the same amount.

DNB discusses these changes in external assets in more detail in its May and June 2024 publications on the results of the benchmark revision for the international investment position.

5.3.2 Sector specific key figures

5.3.2.1 Government sector

The government balance in was hardly adjusted and remains at -2.2 percent of GDP. There have, however, been underlying changes in the government sector’s revenue and expenditure. These largely cancel each other out. Government revenue and government expenditure as a percentage of GDP were revised downwards by approximately 0.1 percentage point6) to 43.7 and 45.9 percent of GDP, respectively. In absolute terms, both government revenue and government expenditure were revised upwards by approximately €8 billion. However, GDP was revised upwards to a greater extent, resulting in a downward adjustment of government revenue and expenditure expressed as a percentage of GDP.

A major contribution to the adjustment of both government revenue and government expenditure comes from the change in recording the energy tax credit. This has resulted in both the income and expenditure being revised upwards by €3.8 billion. On the revenue side, taxes have been revised upwards, and on the expenditure side this mainly applies to income transfers to households. For a more detailed explanation, see Section 4.1.

Another major adjustment to government revenue and expenditure is in the recording of social security contributions. Statutory social security contributions that are deducted from benefits by social security funds were previously netted against benefits. Starting from this revision, the benefits and associated statutory social security contributions will be recorded separately. This change has resulted in an upward adjustment of both the contributions and benefits by €2.9 billion.

Government debt in euros was hardly adjusted. Due to the upward revision of GDP, government debt as a percentage of GDP was revised downwards by 1.3 percentage points to 50.4 percent of GDP.

5.3.2.2 Households sector (including non-profit institutions for households)

Households’ gross disposable income was revised upwards by €1.3 billion to €446.7 billion. Various adjustments underlying this largely cancel each other out. The most important adjustments are explained below.

The gross operating surplus/mixed income from households was revised downwards by €5.4 billion. This is largely due to the rental value of home ownership being revised downwards by €3.3 billion, following a revision of the calculation method. This revision is described in more detail in Section 5.1.5. There were also downward revisions in illegal activities (see Section 4.3) and in-house solar power generation (see Section 4.2).

Employees’ received remuneration was revised upwards by €6.3 billion. This was the result of an upward revision of €4.4 billion relating to employee remuneration paid in the Netherlands (described in Section 5.4.1) and an upward revision of €1.8 billion relating to the balance of received and paid employee remuneration with other countries (described in Section 5.3.1.1). Of this €6.3 billion adjustment, €2.8 billion will accrue as statutory social security contributions mainly to insurance companies and pension funds. This means that this €2.8 billion will have no impact on households’ disposable income and a positive impact of €3.4 billion remains.

Profit distributions received by households were revised downwards by €4.5 billion. Realignment with the source (based on tax data) resulted in a downward adjustment of received dividends (-€3.5 billion). Income received from owning holiday homes abroad was also revised downwards by €0.9 billion (see Section 5.3.1.1).

With respect to the adjustment of disposable income, €5.8 billion is explained by an upward revision of consumption of pension services by this amount (see Sections 5.1.4 and 5.2.1). Total payments to pension funds are broken down into compensation for costs incurred by pension funds (consumption) and contributions to pension schemes (social security contributions). As consumption was revised upwards, the paid social security contributions have been revised downwards by this same amount. As contributions paid are deducted from disposable income, this results in an upward revision of disposable income.

Other income transfers received by households were revised upwards by €3.2 billion, which was almost entirely due to the changed method of recording the energy tax credit amounting to a reduction of €3.4 billion. This change is described in more detail in Section 4.1

The change in recording student travel products resulted in a downward adjustment of household disposable income of €1 billion. The student travel product was previously recorded as a benefit from the government to households, which they then used for the consumption of the student travel product. From now on, this will be recorded as a direct purchase of the product by the government, which means a downward adjustment of household disposable income (and consumption).

Consumer spending was also revised upwards by €19.5 billion to €380 billion. This revision is described in Section 5.2.1. Some of the adjustments in consumer spending relate directly to adjustments in disposable income. These include the rental value of home ownership, the recording method for the student travel product, imputed income received from pension funds and changes in recording the energy tax.

As a result of the upward revision of consumer spending, households’ free savings were revised downwards by €18.2 billion to €66.2 billion. This cuts the savings rate by 4.2 percentage points to 19.1 percent of disposable income.

Residential mortgages were revised upwards by €21.3 billion to €807 billion. Approximately €16 billion concerned mortgage loans from entities in which the households concerned have a substantial interest (see also Section 5.3.1.6). For these types of units, which were previously missing from the national accounts, the debt was estimated based on information from the unit’s corporate tax returns. Mortgage debts owed by households to banks were adjusted by €12.2 billion, following the correction of a misreported amount to DNB.

5.4 Adjustments in the labour accounts

The total number of jobs of employed persons (employees and self-employed) was reduced for reporting year 2021 by 49 thousand to almost 10.9 million. The number of hours worked by employed persons was revised upwards by 223 million to 14.0 billion and the number of employment years of employed persons was revised upwards by 16 thousand to 7.9 million labour years.

5.4.1 Employees

For the employee component, the figures from the labour accounts are largely based on data from the Policy administration of the Employee Insurance Agency (UWV). The Policy administration includes such things as all payroll tax returns from employers in the Netherlands.

The remuneration of employees was revised upwards by €4.5 billion. The remuneration comprises employee salaries and social security contributions charged to employers. At the macro level, employee salaries were barely adjusted (-€10 million), however, this concerns a compound effect of underlying positive and negative adjustments. The social security cost was adjusted upwards by €4.5 billion. The most important causes of the adjustments in remuneration of employees are explained below.

Starting from this revision, the amounts involved in severance and transition payments for labour accounts are recorded directly in the Policy administration. Previously, an estimate needed to be made for this. The part of the transition payments that employers are legally obliged to pay is counted as social security contributions and has been revised upwards by €1.5 billion. Non-statutory benefits relating to severance and transition payments are included in salaries and this amount has been revised upwards by €1.6 billion.

In the national accounts, several items relating to salaries in-kind have been realigned with the levels of the source statistics. These include adjustments to the consumption value of personal use of leased cars, meal benefits provided to employees and free or discounted travel for transport company employees, such as public transport or aviation companies. Public transport cards provided by employers have also been included as a new item under salaries in-kind in the national accounts. These new and updated amounts resulted in an upward adjustment of salaries by €1.0 billion.

The integration of figures from labour accounts with DNB’s statistics on pension contributions has been revised. The pension contributions comprise employee contributions calculated as employee salaries and employer contributions calculated as employer social security contributions. Like before the revision, DNB’s macro total is followed and distributed amongst the different industries in the Netherlands using a model estimate in the labour accounts. Therefore, for total remuneration of employees in the Netherlands, there are no adjustments as a result of the revised integration method, although this may have been the case for individual industries.

The revised integration did, however, result in an adjustment in the ratio of employee and employer contributions, and therefore in salaries and social security contributions, compared with before the revision: €2.7 billion was transferred from salaries to social security contributions. Previously, the total employee contributions from the labour accounts were considered leading and employer contributions from labour accounts were inflated to match the DNB macro total of employee and employer contributions combined. Starting from this revision, DNB’s totals of both employee and employer contributions are considered leading.

A limited adjustment was made to labour volumes and employees. As the estimate of illegal agency jobs was withdrawn, the employee population has been revised downwards by 23 thousand jobs. The number of labour years was revised downwards by 15 thousand and the number of hours worked was revised downwards by 27 million.

5.4.2 Self-employed persons

Labour accounts data regarding self-employed persons are largely taken from the Labour Force Survey (EBB) and the profit declarations of self-employed persons. The jobs of self-employed persons were adjusted downwards by 26 thousand and labour years by 31 thousand upwards. The total number of hours worked was adjusted upwards by 251 million.

The EBB was redesigned in 2021 in which the questioning relating to respondents’ duration of work was revised. The number of hours worked was revised upwards as a consequence of this redesign. The redesign has hardly resulted in any adjustment to the number of jobs and the number of labour years of self-employed persons.

The above-mentioned new estimate for the black and illegal economy resulted in downward revisions for self-employed persons of 42 thousand jobs, 24 thousand labour years and 47 million hours worked.

The remainder of the adjustment to the labour volumes of self-employed persons was due to the use of more up-to-date source data. Some of the source data for self-employed persons became available later than those for employees, which resulted in additional adjustments. These additional revisions were slightly larger than was usual in recent years because the coronavirus pandemic made it more difficult to estimate preliminary figures for the self-employed population.