What is a NACE Code?

The Nomenclature of Economic Activities, or NACE, plays a pivotal role in the European statistical framework. By providing a detailed methodology for categorizing economic activities, NACE ensures that data is comparable across the continent and aligned with international standards such as the ISIC. This alignment not only facilitates global economic analysis but also accommodates the unique economic structures within Europe.

Note: NACE (Nomenclature des Activités Économiques dans la Communauté Européenne)

The Structural Integrity of NACE Codes

Understanding the hierarchy of NACE codes is essential for effectively navigating European economic data. These codes are organized into a systematic four-level hierarchy:

• Section: Broad categories of economic activities.
• Division: More specific sectors within each section.
• Group: Further subdivision of divisions.
• Class: The most detailed level, specifying particular economic activities.

This structure allows for granular analysis and precise economic reporting.

Section	R	Human Health & Social Work Activities
Division	86	Human Health Activities
Group	86.2	Medical & Dental Practice Activities
Class	86.23	Dental Practice Care Activities

Tracing the Evolution of NACE

Since its inception in 1970, NACE has evolved to reflect the dynamic nature of the European economy. The transition from NACE Rev. 2 to NACE Rev. 2.1 signifies an ongoing commitment to precision and relevance, with updates that capture emerging industries and shifts in economic activities. This evolution is crucial for maintaining the accuracy and utility of economic statistics.

Key Changes from NACE Rev. 2 to NACE Rev. 2.1

The move to NACE Rev. 2.1 introduces several refinements, ensuring that classifications stay relevant to contemporary economic landscapes. For example, changes in the Information and Communication sector now recognize the rise of digital content production and distribution, while updates in the Financial and Insurance Activities reflect the growing importance of fintech and digital banking.

NACE Rev. 2		NACE Rev. 2.1
Section	Description	Section	Description
A	Agriculture, Forestry and Fishing	A	Agriculture, Forestry and Fishing
B	Mining and Quarrying	B	Mining and Quarrying
C	Manufacturing	C	Manufacturing
D	Electricity, Gas, Steam and Air Conditioning Supply	D	Electricity, Gas, Steam and Air Conditioning Supply
E	Water Supply, Sewerage, Waste Management and Remediation Activities	E	Water Supply, Sewerage, Waste Management and Remediation Activities
F	Construction	F	Construction
G	Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles	G	Wholesale and Retail Trade
H	Transportation and Storage	H	Transportation and Storage
I	Accommodation and Food Service Activities	I	Accommodation and Food Service Activities
J	Information and Communication	J	Publishing, Broadcasting, and Content Production and Distribution Activities
K	Financial and Insurance Activities	K	Telecommunications, Computer Programming, Consulting, Computing Infrastructure and Other Information Service Activities
L	Real Estate Activities	L	Financial and Insurance Activities
M	Professional, Scientific and Technical Activities	M	Real Estate Activities
N	Administration and Support Service Activities	N	Professional, Scientific and Technical Activities
O	Public Administration and Defence, Compulsory Social Security	O	Administration and Support Service Activities
P	Education	P	Public Administration and Defence, Compulsory Social Security
Q	Human Health and Social Work Activities	Q	Education
R	Arts, Entertainment and Recreation	R	Human Health and Social Work Activities
S	Other Service Activities	S	Arts, Sports and Recreation
T	Activities of Households as Employers; Undifferentiated Goods- and Services- Producing Activities of Households for Own Use	T	Other Service Activities
U	Activities of Extraterritorial Organisations and Bodies	U	Activities of Households as Employers; Undifferentiated Goods- and Services- Producing Activities of Households for Own Use
		V	Activities of Extraterritorial Organisations and Bodies

Note: This table highlights the primary changes and refinements introduced in NACE Rev. 2.1, ensuring classifications are up-to-date with contemporary economic activities.

Applications of NACE Codes

NACE codes are integral to various applications beyond statistical reporting:

• Policy Making: Governments and institutions rely on NACE codes to develop policies that address specific economic sectors.
• Market Analysis: Businesses use NACE codes to identify market trends and competitive landscapes.
• Environmental Management: Registration for environmental management systems often requires activity descriptions based on NACE codes.
• International Trade: NACE codes facilitate trade negotiations and agreements by providing a clear understanding of economic activities.

The Strategic Importance of NACE Codes

In the European statistical system, NACE codes are indispensable. They provide a uniform standard that enhances the clarity and consistency of economic reporting, enabling policymakers, businesses, and researchers to make informed decisions. The harmonization with ISIC further strengthens their utility, ensuring that European economic data is compatible with global economic analyses.

NACE and ISIC: A Harmonious Alignment

While NACE and ISIC share high-level categories, NACE offers additional detail to account for Europe's diverse economic activities. This alignment ensures that European data can be seamlessly integrated into international databases, supporting global economic research and policy development.

Countries that use NACE Codes

NACE codes are utilized across the European Union, with countries such as Austria, Belgium, and Germany fully integrating them into their national statistical systems. This widespread adoption underscores the codes' importance in fostering economic cohesion and comparability within the EU.

AT	Austria	IE	Ireland
BE	Belgium	IT	Italy
BG	Bulgaria	LT	Lithuania
CY	Cyprus	LU	Luxembourg
CZ	Czech Republic	LV	Latvia
DE	Germany	MT	Malta
DK	Denmark	NL	Netherlands
EE	Estonia	PL	Poland
EL	Greece	PT	Portugal
ES	Spain	RO	Romania
FI	Finland	SE	Sweden
FR	France	SI	Slovenia
HR	Croatia	SK	Slovak Republic
HU	Hungary	UK	United Kingdom