THE INSTITUTIONAL SECTORS

2.17 The need for aggregation means that it is impossible to consider individual institutional units separately; they must be combined into groups called institutional sectors or simply sectors, some of which are divided into sub-sectors.

Table 2.1 Sectors and sub-sectors

Sectors and sub-sectors				Public		National Private		Foreign Controlled
Non-financial corporations		S.11		S.11001		S.11002		S.11003
Financial corporations		S.12
Central Bank		S.121
Other monetary financial institutions		S.122		S.12201		S12202		S.12203
Other financial intermediaries, except insurance corporations and pension funds		S.123		S.12301		S.12302		S.12303
Financial auxiliaries		S.124		S.12401		S.12402		S.12403
Insurance corporations and pension funds		S.125		S.12501		S.12502		S.12503
General government		S.13
Central government		S.1311
State government		S.1312
Local government		S.1313
Social security funds		S.1314
Households		S.14
Employers (including own account workers)		S.141 + S.142
Employees		S.143
Recipients of property incomes		S.1441
Recipients of pensions		S.1442
Recipients of other transfer incomes		S.1443
Others		S.145
Non-profit institutions serving households		S.15
Rest of the world		S.2

The European Union		S.21
The member countries of the EU		S.211
The institutions of the EU		S.212
Third countries and international organisations		S.22

2.18 Each of the sectors and sub-sectors groups together the institutional units which have a similar type of economic behaviour.

The accounts for sectors and sub-sectors record all the activities, whether principal or secondary, of the institutional units covered.

Each institutional unit belongs to only one sector or sub-sector.

2.19 When the principal function of the institutional unit is to produce goods and services, it is necessary in deciding the sector to which it should be allocated – to distinguish first of all the type of producer it is belonging to.

Three types of producers are distinguished in the ESA:

1. private and public market producers (see paragraph 3.24 and Table 3.1 of chapter 3.);
2. private producers for own final use (see paragraph 3.25 and Table 3.1 of chapter 3);
3. private and public other non-market producers (see paragraph 3.26 and Table 3.1 of chapter 3).

Institutional units which are private producers for own final use are classified in the Households sector (S.14) together with the unincorporated enterprises owned by households (see paragraph 3.30.).

Institutional units which are other non-market producers are classified in the sector General Government (S.13) or Non-profit institutions serving households (S.15).

2.20 Table 2.2 shows the type of producer, the principal activities and functions which are characteristic of each sector.

Table 2.2 The type of producer, the principal activities and functions classified by sector

Sector		Type of producer		Principal activity and function
Non-financial corporations (S.11) (see paragraph 2.21.)		Market producer		Production of market goods and non-financial services
Financial corporations (S.12) (see paragraph 2.32.)		Market producer		Financial intermediation including insurance Auxiliary financial activities
General government (S.13) (see paragraph 2.68.)		Public other non- market producer		Production and supply of other non-market output for collective and individual consumption and carrying out transactions inten-ded to redistribute national inco-me and wealth
Households (S.14)
– as consumers				Consumption
– as entrepreneurs		Market producer or private producer for own final use		Production of market output and output for own final use
(see paragraph 2.75.)
Non-profit institutions serving households (S.15) (see paragraph 2.87.)		Private other non-market producer		Production and supply of other non-market output for individual consumption

The rest of the world (S.2) is a grouping of institutional units (see paragraph 2.89.) which is not characterised by similar objectives and types of behaviour; it groups together non-resident institutional units insofar as they carry out transactions with resident institutional units.