Globalization: Innovations in macroeconomic statistics for an interconnected world

Abstract

Globalization has fundamentally altered the landscape of production and income allocation, placing greater demands on macroeconomic statistical frameworks. The rise of multinational enterprises (MNEs), with complex cross-border operations and financial strategies, including transfer pricing and the use of special purpose entities (SPEs), has blurred the connection between where goods are produced and where income accrues. This disconnect complicates the interpretation of key indicators and can lead to misdiagnosis of domestic economic conditions and risks. To address these challenges, user needs have shifted toward more nuanced measures that reveal who truly benefits from economic activity. These evolving needs have driven significant updates to international statistical standards, including the 2025 SNA and BPM7, which introduce new frameworks and supplementary measures designed to better capture the realities of a globalized economy. This article examines the profound impact of MNEs on macroeconomic statistics, highlights the limitations of existing frameworks, and assesses recent advances in international guidance. Drawing on country experiences, it demonstrates the importance of adapting measurement approaches to ensure that economic data remain meaningful and informative in an interconnected world.