The data in the Economy section provide a picture of the global economy and the economic activity of more than 200 countries and territories that produce, trade, and consume the world’s output. They include measures of macroeconomic performance and stability and broader measures of income and savings adjusted for pollution, depreciation, and depletion of resources. The world economy grew 2.3 percent in 2012, to reach $71 trillion, and the share from developing economies grew to 34.3 percent. Growth is expected to remain around 2.4 percent in 2013. Low- and middle-income economies, estimated to have grown 5.1 percent in 2012, are projected to expand 5.5 percent in 2013. Growth in highincome economies has been downgraded from earlier forecasts to 1.3 percent in 2012 and 2013. Beginning in August 2012, the International Monetary Fund implemented the Balance of Payments Manual 6 (BPM6) framework in its major statistical publications. The World Bank will implement BPM6 in its online databases and publications in April 2013. Balance of payments data for 2005 onward will be presented in accord with the BPM6. The historical BPM5 data series will end with data for 2008, which can be accessed through the World Development Indicators archives. The change to the BPM6 framework will affect some components of the balance of payments. In the current account, “merchanting”—the purchase of goods from a nonresident and the subsequent resale to another nonresident without
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the goods being present in the economy—has been reclassified from services to goods, while manufacturing services performed on physical inputs owned by others along with maintenance and repair services were reclassified from goods to services. In the capital account, reverse investment in direct investment has been reclassified to present assets and liabilities on a gross basis in the balance of payments and international investment position. No changes were made to the balances on current account, capital account, or financial account. Levels of reserves were not adjusted, nor were net errors and omissions. For many economies changes to major aggregates and balancing items will be limited. The change in the methodology for “goods for processing” results in increases in imports and exports of services (equivalent to the amounts received or paid for manufacturing services) and larger reductions in gross imports and exports of goods (due to the elimination of imputed transactions in goods that do not change ownership), though net goods and services trade may not be affected. The change in the recording of reverse investment in foreign direct investment will result in substantial increases in both international investment position assets and liabilities for many economies under BPM6, though net international investment position is not affected by this change. The complete balance of payments methodology can be accessed through the International Monetary Fund website (www.imf.org/external/ np/sta/bop/bop.htm).
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