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United Nations Economic Commission for Africa African Centre for Statistics Chapter 5: Classification of Industries and Products and Size of SUTs EN/SUT/2014/Pres/02 Ramesh KOLLI Senior Advisor on National Accounts, African Centre for Statistics At Expert Group Meeting on Supply and Use Tables 2-6 June 2014, Port Louis, Mauritius Le Méridien Ile Maurice Outline of Presentation • • • • • • General Classification of Industries for the SUT Classification of Products for the SUT Final consumption expenditure Vectors Import and Export Vectors Concluding remarks African Centre for Statistics 1.General • The size of SUT refers the number of Industries and Products . • For 2011 ICP, the guiding factor for determining the size and classification of SUT is that the SUT product classification should match with ICP basic heading classifications. • In most countries, the primary data available from different sources are classified:– Central Product classification (CPC) for products – International Standard Industrial Classification (ISIC) for industries – Standard International Trade Classification (SITC) & Harmonized Commodity description and coding system (HS) for foreign trade – COICOP/COFOG/COPNI for final consumption expenditure African Centre for Statistics 2. Classification of Industries for SUT • The SNA recommends the use of ISIC for the classification of Industries for SUT. • The latest version of ISIC rev 4 contains 21 sections, 88 divisions, 238 groups & 419 classes • ICP does not make any recommendation on the size of industries, as the requirement of ICP are GDP expenditure in terms of product and purposes. • For ICP, product classification is more important than industrial classification. • Countries may choose industry classification for SUT on the basis of their importance to the economy. African Centre for Statistics 3. Classification of Products for SUT • The SNA recommends the use of Central Product Classification (CPC, the latest version is CPC 2.0) for classifying products. • For ICP, the ideal product level to be included in the SUT is the ICP basic headings. • ICP level of product classification in the SUT will provide weight to the price collected and for the compilation of real GDP expenditure. African Centre for Statistics 4. Final Consumption Expenditure Vector • The recording of the expenditure of the household, NPISH, and government sectors follows the classification of final expenditure by purpose. namely (COICOP), (COPNI) & (COFOG). • The primary data available on consumption expenditures of household , NPISH and government according to purpose need to be reclassified to the product classification chosen for SUT. • The concordance table between COICOP, COFOG & COPNI has to be constructed. African Centre for Statistics 5.Import & Export Vector • The International classification for recording imports and exports are the Standard International Trade classification SITC & HS. • The concordance table has to be established to transform the data on Import and export in SITC/HS to the product included in the SUT based on CPC classification. African Centre for Statistics 6. Concluding Remarks • Countries may choose the size of SUT on the basis of the number of factors that include:Importance of industries and products for the economy; Availability of primary data; Current national accounts compilation practices, especially for production GDP; • For ICP 2011, the guiding factor to meet the ICP requirement for countries is to construct SUT at basic heading level African Centre for Statistics United Nations Economic Commission for Africa African Centre for Statistics Thank you Ramesh KOLLI Senior Advisor on National Accounts, African Centre for Statistics At Expert Group Meeting on Supply and Use Tables 2-6 June 2014, Port Louis, Mauritius, Le Méridien Ile Maurice