Raad Mahmoud Al-Tal

The latest update to the System of National Accounts (SNA) marks a turning point in how the world measures economic activity. It reflects the profound shifts in the global economy—from the rise of the digital economy to intangible assets and cross-border production chains. Since the last revision in 2008, smartphones, artificial intelligence, and crypto assets have reshaped how value is created. In March 2025, the United Nations Statistical Commission approved the sixth version of the SNA at its 56th session in New York, giving governments stronger tools to track their economies and design policies with more accurate data.

A central driver of the update is the need to measure digital activity better. While digital technologies have expanded rapidly, productivity growth in advanced economies has lagged behind expectations. Many economists argue that the problem lies not in weak innovation but in outdated statistical tools. The new SNA introduces clearer ways to measure sectors such as artificial intelligence, e-commerce, and digital platforms, making national accounts more reflective of today’s economic reality.

Fifteen years ago, crypto assets barely existed; today they influence markets and financial stability. Yet they remain excluded from GDP, as they do not generate traditional goods or services. The updated framework classifies them as “nonproduced nonfinancial assets,” allowing them to be counted in national wealth and considered in tax and regulatory policies. This change improves transparency and helps governments manage future risks.

The 2008 global financial crisis highlighted the need for sharper tools to detect vulnerabilities. With the growing role of nonbank financial institutions and increasingly complex instruments, traditional statistics proved insufficient. The new SNA addresses this by offering more detailed classifications of financial assets and liabilities by instrument and sector. This provides regulators with a clearer picture of systemic risks and strengthens oversight.

In today’s global economy, companies often design in one country, manufacture in another, and sell worldwide. Measuring each country’s true contribution has become increasingly complex. To address this, the SNA now aligns with the Balance of Payments Manual, improving consistency and accuracy in recording cross-border production. This provides policymakers with better tools to analyze trade and global value chains.

Another innovation is the emphasis on Net Domestic Product (NDP), which deducts capital depreciation and natural resource depletion from GDP. NDP provides a more realistic picture of sustainable growth, especially in resource-dependent economies where GDP alone can exaggerate long-term performance. This shift encourages governments to consider not only the pace but also the quality and sustainability of growth.

Despite its benefits, adopting the new standards will be demanding. Many countries face limited budgets and staff shortages in their national statistical agencies. Implementing the SNA requires significant investment in training, technology, and political commitment. To support this, the IMF has pledged technical assistance and capacity-building, with the goal of full adoption of the new SNA and Balance of Payments Manual by 2029–2030.

For developing countries, including Jordan and others in the Arab region, the update is particularly relevant. The growing role of digital businesses, startups, and financial innovations makes it essential to reflect these activities in national accounts. Doing so offers a truer understanding of economic performance and helps set more effective policy priorities. The inclusion of NDP also enables governments to assess sustainability more accurately, a vital consideration for economies relying on natural resources.

Yet the greatest challenge for these economies lies in capacity. Building strong statistical systems and modern data infrastructure requires resources and sustained political will. International cooperation—through organizations such as the IMF and the UN—will therefore be critical in turning these standards into practical tools that support growth and stability.

Updating the SNA is more than a technical adjustment. It is a strategic step to ensure that economic statistics keep pace with a fast-changing, digital, and interconnected world. As economies become more complex, governments that adapt quickly to the new framework will be better equipped to design sound policies, strengthen resilience, and pursue sustainable development. For both advanced and developing economies, the sixth version of the SNA is not just about measurement—it is about shaping a clearer, more accurate picture of the future global economy.

Raad Mahmoud Al-Tal - Head of Economics department- The University of Jordan