chapter 4 structure of supply use table (sut) inese larue

Expert Group MeetingUNECA – Addis Ababa 24 – 28 October 2011

Handbook on Supply and Use TableCompilation, Application and Good Practices

Chapter 4Structure of Supply Use Table (SUT)

Inese LarueNational Bureau of Statistics (Seychelles)

October 2011

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

Supply

• Source of goods and services available within the domestic territory / boundary originate from either:

(i) Domestic Production(ii) Imports

Domestic Production Imports

Total Goods & Services

Uses

How are the available goods and services used?

ExportsIntermediate Consumption

Households Government NPISH

Investment (GFCF)

Total Goods & Services

Final Consumption Expenditure

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

Supply=Use ?????

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)

SIMPLIFIED SUT

SUPPLY USES

DOMESTIC PRODUCTION (DP)

by kind of activities

IMPORTS (IMP)

INTERMEDIATE CONSUMPTION (IC)

by kind of activity

OTHER USES

VALUE ADDED

obtain as the difference between DP and IC and broken down by kind of activity

The Value Added Quadrant of SUT

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

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)

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?

Thank you!