Definition
The residence of an institutional unit is the economic territory with which it has the closest connection, expressed as its predominant center of economic interest. Each institutional unit is a resident of only one economic territory. This definition applies in the context of Balance of Payments statistics, International Investment Position, and Financial Accounts.
Further information
An institutional unit is a resident of an economic territory when within that economic territory there is a location, a dwelling, a place of production, or another type of facility in which or from which the unit conducts or intends to continue conducting transactions and economic activities on a significant scale. A household is a resident of the economic territory in which its members maintain or intend to maintain a dwelling or a series of dwellings that they treat and use as their principal residence.
Related concepts
- Balance of Payments
- International Investment Position
- Net lending or borrowing of the economy
- Financial Accounts
References
- European System of Accounts 2010. Interactive version.
- Sixth Edition of the IMF’s Balance of Payments and International Investment Position Manual.
Update date: January 2025
