National accounts are compiled in the EU according to the European System of National and Regional Accounts (ESA) framework. This year the new ESA 2010 framework has replaced the previous ESA 95 version and all EU member states have had to adopt ESA 2010. In response to a query from the Health Research Board, the Central Statistics Office stated:
There has been a requirement to include illegal activities in the National Accounts since the ESA 95 version of the national accounting standards were introduced but a lack of detailed and comprehensive data sources for these activities have been the cause of significant measurement difficulties for all EU member states. The European statistical agency, Eurostat, has agreed recommendations on the estimation and recording of these activities in recent years and now requires each member state to include estimates for illegal activities in their National Accounts before September 2014.1
The National Income and Expenditure Annual Estimates 2013 for Ireland have been released based on the ESA 2010 framework. The percentages of gross domestic product (GDP)2 in respect of illegal activities back to 2010 include estimates for economic activity associated with the smuggling and production of drugs as well as the smuggling of fuel, cigarettes and prostitution. After contributing 0.73% of GDP in 2010, the contribution from illegal economic activities dipped to 0.72% in 2011 and 0.70% in 2012, but recovered to contribute to 0.72% in 2013.3 It is not possible at present to clarify either the proportion of the total in the category ‘Illegal economic activities’ associated with the illicit drugs market or how precisely this figure was calculated.
(Johnny Connolly)
1 Central Statistics Office, personal communication, 1 August 2014
2 GDP represents total expenditure on the output of goods and services produced in Ireland and valued at the prices at which the expenditure is incurred.
3 Central Statistics Office (3 July 2014) Implementing new international standards for national accounts and balance of payments statistics. Press release.
www.cso.ie/en/newsandevents/pressreleases/2014pressreleases/implementingnewinternationalstandardsfornationalaccountsandbalanceofpaymentsstatistics/
