Harmonizing economic classifications

Description

Harmonizing economic classifications involves standardizing the definitions, categories, and reporting systems used to describe economic activities across regions and sectors. This strategy aims to improve data comparability, facilitate international trade, and enhance policy coordination by remedying inconsistencies and ambiguities in economic data. Practical actions include developing unified classification frameworks, updating statistical codes, and promoting their adoption among governments and organizations to ensure reliable economic analysis and informed decision-making.

Context

Different international organizations have developed economic classification systems that raise issues of compatibility. There is a recognized need to maintain coordination among the International Standard Industrial Classification of All Economic Activities (ISIC), the General Industrial Classification of Economic Activities within the European Communities (NACE) and the Classification of Branches of National Economy (CBNE) of CMEA, as well as among the Harmonized Commodity Description and Coding System (HS) of the Customs Cooperation Council, the Standard International Trade Classification (SITC) and the new Central Product Classification (CPC). There is a desire to ensure their consistency with the revised System of National Accounts and the System of Balances of the National Economy.

Implementation

Joint action has been taken by the Joint Working Group on World Level Classifications of the Statistical Office of the United Nations Secretariat and the Statistical Office of the European Communities, by the United nations Expert Group on Harmonization of Economic Classifications and by the Voorburg Group on Service Statistics to resolve outstanding issues related to the revision of ISIC and the development of CPC.