Definition
It refers to the elimination of both jobs and resources from operations within the same institutional unit or between units that are part of a group or sector, as well as the elimination of reciprocal financial asset and liability balances.
Further information
Data related to an institutional sector (or group of sectors) can be presented on a consolidated or non-consolidated basis. When data is not consolidated, the financial asset data shows the total financial rights of the sector, regardless of whether the economic agents with obligations to that sector belong to the same sector or another. In the case of consolidated data, these total financial rights are reduced by those corresponding to obligations within the same sector. The same applies to liabilities.
For example, the equity data of the non-financial corporations sector (liabilities of this sector), when not consolidated, presents the total shares in circulation of non-financial corporations. If the data is consolidated, this total is reduced by the shares held by other non-financial corporations. This provides a more accurate measure of the rights or obligations of a sector relative to the rest of the economy.
Update date: January 2025
