December 2016 – The further development of integrated economic accounts for South Africa – institutional sector balance sheets
B de Beer, H Wagner and M Kock
Last Modified Date:
2020-10-01, 09:30 PM
Quarterly Bulletins > Articles and Notes
The 2008 global financial crisis and the adverse economic conditions in its wake, which are still felt today, illustrate the extent of integration between real economic activity and financial markets, both within an economy and among countries. Although significant bodies of economic and financial statistics existed at the time, there were crucial areas that were poorly covered. The limited availability and comparability of time series data across countries compounded the problem, making it difficult to track the interconnectedness of global economic and financial activity. On a global scale, economic agents have financial positions with each other which create a link for contagion, contingent upon the structure of national institutional sector balance sheets and concomitant exposures. This is further exacerbated by the existence of complex financial instruments both on and off balance sheet which create serious financial stability risks. The scarcity or non-existence of data on the network of domestic and international financial positions contributes significantly to inherent economic and financial stability risks.