Transcript Chapter 4:Structure of SUT

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)
•
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
Total Goods &
Services
Domestic
Production
Imports
Uses
How are the available goods and services used?
Total Goods &
Services
Intermediate
Consumption
Exports
Investment
(GFCF)
Final Consumption Expenditure
Households
Government
NPISH
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
SUT & GDP
Supply
DP + IMP
=
Use
= 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)
Goods
1
2
…
Services
1
2
…
TOTAL
IMPORTS (IMP)
TOTAL
SUPPLY AND
USE
EXPORTS
(EXP)
CHANGE IN INVENTORIES
FINAL CONSUMPTION EXPENDITURE
GROSS FIXED CAPITAL FORMATION
(GFCF)
NON-PROFIT INSTITUTIONS SERVING
HOUSEHOLDS
(NPISH)
HOUSEHOLDS
(HFCE)
GOVERNMENT
(GFCE)
IMTERMEDIATE CONSUMPTION
(IC)
SUPPLY
CAPITAL
FORMATION
DOMESTIC PRODUCTION (DP)
SIMPLIFIED SUT
USE
The Value Added Quadrant of SUT
SUPPLY
DOMESTIC PRODUCTION
(DP)
by kind of activities
USES
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
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!