Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.So, farewell then, picturesque term for life’s little ripostes to double-entry accounting and the ‘balance’ part of international balances of payments.Your official replacement is functional, and often already in use as a synonym. If a bit less mysterious.But at least this means that the IMF’s latest update to its balance of payments manual is here! From the fund’s list of big changes to the premier guide to global macroeconomic statistics since the last official update, in 2009:The term “statistical discrepancy” replaces “net errors and omissions” (paragraph 2.25) . . . And if we go to Paragraph 2.25 onward:2.25 Although the BOP accounts are, in principle, balanced, imbalances result in practice from imperfections in source data and compilation. This imbalance, a usual feature of BOP data, is labeled statistical discrepancy and should be identified separately in published data. It should not be included indistinguishably in other items . . . . . . The term statistical discrepancy should not be interpreted as meaning errors on the part of compilers; it is far more common that this discrepancy is caused by other factors, such as incomplete data sources and poor-quality reporting.Oh, it’s not the same. We’ll take a while to get used to this.The IMF manual also includes such updates as the treatment in balance of payments terms of crypto assets, central bank swaps and repo transactions in international reserves, and the rise of “factoryless” manufacturing.The latter term refers to things like Apple or other multinationals contracting production in China. These definitions for balance of payments purposes might matter more than usual on the eve of a global trade war. Paging Brad Setser.Meanwhile, we see the manual also takes on another disruptive force in global capital flows since 2009 — influencers posting brain rot:11.110 The users of free online platforms (which are mostly organized as commercial enterprises) may create content such as videos, images, text, and audio, and make them available on the platforms. If the content creators receive remuneration (income) from the advertisers (via platform) that place advertisements next to the content (or on the spaces of their channels) on the platform, it should be recorded as supply of advertisement services. Although the “free” platform collects the fee from the advertiser and passes it on after deducting the charges for its services, the content creator is treated as providing advertisement services to the advertiser and consuming the services of the platform rather than as providing services to the platform (see paragraphs 16.62-64 for additional details on the content created by the platform users) . . . A footnote adds: “If content creators receive remuneration through subscriptions or by a means other than advertising, their services should be included under audiovisual and related services.”Of course, even with a related UN update to national accounts data also now ready, balance of payments statistics don’t change overnight, and the IMF says that “countries are encouraged to implement both standards by 2029–2030.” So we might have a few net errors and omissions hanging around just yet.
