Classification of Economic Activities (EVRK Rev. 2.1)

Classification of Economic Activities (EVRK) is a structured set of social and economic activities carried out in the country’s economy, the unit of classification of which is the kind of activity. The use of this Classification allows for the categorisation of all economic entities existing in the country and for the collection of data on population, production, employment, agriculture, income and other data by kind of activity. It is also used to compare statistics at national and cross-border level.

The Classification is based on Statistical Classification of Economic Activities in the European Community – NACE Rev. 2 (Nomenclatures des Activities de Communite Europeene – NACE Rev. 2), which is compiled by the Statistical Office of the European Union (Eurostat), and which is related to the UN International Standard Industrial Classification of All Economic Activities (ISIC Rev. 4). This allows statistical information to be compared by economic activity at both European and global level. The first 4 digits of the EVRK correspond to the NACE codes for the same economic activities, i.e. the codes, titles and explanatory notes are identical. The only difference is that the EVRK has the 5^th level (6‑digit codes) – subclasses. 

Major changes are currently taking place all over the world: the all‑encompassing restructuring of the economy, the rapid evolution of technologies make it difficult to reflect changes in the economy and society using the old version of the Classification (the current version of the Classification (EVRK Rev. 2) has been valid since 2008). Some activities are becoming obsolete and disappearing or declining in popularity, while new activities are emerging or becoming popular. Changes in technologies and processes make it difficult to classify activities. This has led to the need to change the structure of the Classification and to update the explanatory notes. For these reasons, an update of the UN International Standard Industrial Classification of All Economic Activities (ISIC Rev. 4) as well as updates of NACE Rev. 2, EVRK Rev. 2 and other related classifications (the Central Product Classification (CPC Rev. 2), Classification of Products by Activity Rev. 2.1 (CPA Rev. 2.1), Classification of Products and Services (PGPK 2022)) have been initiated.

Following the decision to update NACE (including EVRK) in 2019, in consultation with national statistical authorities, the European Commission services, various industry federations and central banks, thousands of proposals were collected and discussed in a dedicated working group. Some of the proposals have led to structural changes to the classification, while other proposals have provided additional explanatory notes to help classify activities that have recently become popular or that are new.

As with EVRK Rev. 2, the only difference between EVRK Rev. 2.1 and NACE is that it has the fifth level – subclasses (6‑digit codes). Not all classes have subclasses in EVRK Rev. 2, and therefore, in some categories, the lowest level is a class, in other categories – a subclass. In order to maintain a uniform code structure, registers have generally used artificially constructed codes by adding as many zeros as there are missing digits to form a code of the lowest level. This caused difficulties in ensuring that units of activity are classified at the lowest level and that units carrying out the same activity are classified in the same category. In order to resolve these problems and to ensure the consistency of the classification at all levels, the fifth level of EVRK Rev. 2.1 has been assigned to all classes.

Main changes in the classification of activities: EVRK Rev. 2.1 focuses more on ecology and the circular economy (new classes for the production of biofuels, electricity production from renewable sources, changes to the classes for waste disposal and material recovery), culture (a separate class for trade in cultural goods, a more detailed classification of activities related to arts creation and culture), military industry (separate classes for the production and repair of military equipment), services (new classes for the classification of intermediary services, a more detailed classification of health care and personal service activities). Information, communication and information technology activities have also been expanded. Section J of EVRK Rev. 2 (“Information and communication”) is divided into two sections: one section is dedicated for publishing, content creation and distribution, and another one – for IT, telecommunications and information services.

One of the most reorganised sections of EVRK Rev. 2 is Section G – “Wholesale and retail trade; repair of motor vehicles and motorcycles”. The former Division 45 of EVRK Rev. 2 “Wholesale and retail trade as well repair of motor vehicles and motorcycles” has been integrated into the corresponding Divisions of EVRK Rev. 2.1: 46 (“Wholesale”), 47 (“Retail trade”), and 95 (“Repair and maintenance”). Moreover, retail trade will no longer be subdivided according to the place of sale, and classification thereof will be based only on groups of traded goods.

The new classification will better reflect changes in the current economy and society, will help to identify, formulate and monitor policy objectives for Lithuania and the EU, and will provide more accurate statistical information on the development of business and society.

You can see all the changes in detail in the correlation table between ERVK Rev. 2 and ERVK Rev. 2.1.

The change in the Classification of Economic Activities (EVRK Rev. 2 is changed to EVRK Rev. 2.1) poses a number of challenges for the State Data Agency and other institutions producing official statistics, which requires additional resources and preparation.

The first step is to recode the Statistical Register of Economic Entities. This must be done in 2025. This means that the activity codes of all economic entities classified under EVRK Rev. 2 will have to be revised and changed according to EVRK Rev. 2.1. This process is necessary to ensure that the new classification is applied consistently in all statistical surveys and reports.

During the transition period, which may last several years depending on the survey, data will have to be collected using both classifications. This means that the activities of enterprises and organisations will have to be measured simultaneously using both EVRK Rev. 2 and EVRK Rev. 2.1. This decision is necessary in order to ensure the comparability and integrity of the data and to avoid interpretation errors due to methodological differences.

Time series will also have to be recalculated in order to ensure continuity and coherence of the statistics and to avoid inaccuracies in the analysis of long‑term trends.

The change of the classification will also require the updating of statistical data processing and analysis systems, the adaptation of software solutions to the new activity codes, and the training of staff on the new classification.

The change in the Classification of Economic Activities (EVRK Rev. 2 is changed to EVRK Rev. 2.1) may present some challenges for users of statistics. Although a number of time series will be recalculated in order to adjust the data from the previous periods, breaks in time series may occur in some statistical data. Moreover, the different timing of the transition to EVRK Rev. 2.1 foreseen in the different statistical domains may lead to confusion for users, as some data will be published using EVRK Rev. 2, while other data – EVRK Rev. 2.1.

Despite the transitional difficulties, the updated classification will better reflect the realities of today’s economy, allowing users to obtain more accurate and detailed data on certain sectors, to analyse their changes more accurately and to make more informed decisions. Moreover, EVRK Rev. 2.1 is aligned with other international classifications (NACE Rev. 2.1, ISIC Rev. 5), thus ensuring international comparability of data. This is particularly important when analysing global trends, forecasting economic developments or participating in cross-border projects.