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Chapter 4 Structure of Supply Use Table (SUT) Inese Larue

Expert Group Meeting UNECA – Addis Ababa 24 – 28 October 2011 Handbook on Supply and Use Table Compilation, Application and Good Practices. Chapter 4 Structure of Supply Use Table (SUT) Inese Larue National Bureau of Statistics (Seychelles) October 2011. Supply Use Table (SUT).

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Chapter 4 Structure of Supply Use Table (SUT) Inese Larue

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  1. Expert Group MeetingUNECA – Addis Ababa 24 – 28 October 2011Handbook on Supply and Use TableCompilation, Application and Good Practices Chapter 4 Structure of Supply Use Table (SUT) Inese Larue National Bureau of Statistics (Seychelles) October 2011

  2. Supply Use Table (SUT) • Transparent framework for compiling national accounts data on the production process. • Represents very clearly the available source data • Classify main transactions in goods and services in the economy according to • Economic Activity / Industry • Purpose • Exist in pairs with common valuation and level of detail for identified products

  3. Supply • Source of goods and services available within the domestic territory / boundary originate from either: • Domestic Production • Imports Total Goods & Services Domestic Production Imports

  4. Uses How are the available goods and services used? Total Goods & Services Exports Intermediate Consumption Investment (GFCF) Final Consumption Expenditure Households Government NPISH

  5. Supply=Use ????? Supply = Use????? • If Total Supply = Total Use then the 2 sides should balance.  • However, NOT all that has been supplied is necessarily used up in the accounting period. • Inventories – To balance Supply and Use, change in inventories need to be accounted for (This can be positive or negative). This comes into the equation on the Use side

  6. SUT & GDP Supply = Use DP + IMP = IC + HFCE+GFCE +NPISH +GFCF+ INV+ EXP (1) Now : GDP(P) = GO–IC (Where GO = DP) And GDP(E) = HFCE+GFCE +NPISH +GFCF+ INV+EXP-IMP Subtracting Imports and Intermediate Consumption from both sides of Equation 1 gives: GDP(P) = GDP(E) DP - IC = HFCE +GFCE +NPISH+GFCF+ INV + EXP-IMP (2)

  7. SIMPLIFIED SUT

  8. The Value Added Quadrant of SUT

  9. Key properties of SUT • Generates GDP(P) and GDP(E) simultaneously • Involves balancing supply and uses at detailed commodity level • Ensures accounts are internally consistent • Generates value added by kind of activity • Enhances accuracy of both GDP(P) and GDP(E) • Provides basis for compilation of Input-Output tables

  10. Challenges • What level of detail? • Deriving a detailed breakdown of household consumption expenditure from direct sources • Classifications (harmonisation between supply and use categories) • Treatment of incomplete / missing data • Treatment of contradictory/conflicting information • Surveys (cost & time factors)

  11. QUESTIONS & ANSWERS??? • How to determine level of detail? • What needs to be done to compile a full and consistent set of data with the relatively limited information that can be obtained from the reporting units in the economy?

  12. Thank you!

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