Transcript Chapter 4:Structure of SuT - African Centre for Statistics

COMMENTS ON CHAPTER 4 OF
THE HANDBOOK
BY
LIZZIE CHIKOTI
NATIONAL STATISTICAL OFFICE
MALAWI
Expert Group Meeting on Supply and Use Tables in support
of the ICP, Addis Ababa, Ethiopia, 24 – 28 October 2011.
Introduction to SUT
• The chapter is short and well elaborated
• The SUT mainly focuses on the product
balances; where products come from and
where they are used. These products are both
goods and services
• For some countries, Supply and Use Tables are
fully integrated in the National Accounts
system and used for both statistical and
analytical purposes
Expert Group Meeting on Supply and Use Tables in support of the ICP,
Addis Ababa, Ethiopia,
24 – 28 October, 2011
Advantages of using SUT
• Knowledge and judgement have to be used to
reach a balance based on the most reliable
data
• The SUT provides a comprehensive framework
for reconciliation of data.
• Malawi uses SUT as an integral part of the
compilation of final annual National Accounts
at current prices as well as previous year’s
prices ( double deflation technique)
Expert Group Meeting on Supply and Use
Tables in support of the ICP, Addis Ababa,
Ethiopia, 24 – 28 October 2011.
Advantages of using SUT
• SUT can also be converted into output-input
tables (IOT), industry by industry or product
by product tables.
• The SUT and IOT represent statistical
databases that that are used for econometric
models and economic planning.
• Malawi compiles a 60 by 60 IOT which is used
by the Department of Development Planning
for its model on forecasting GDP
Expert Group Meeting on Supply and Use Tables in support of the ICP,
Addis Ababa, Ethiopia,
24 – 28 October 2011
Treatment of NPISHs
• Par 83 – The NPISHs services can also be
included on the production side the way we do
with government
• Expenditure by NPISHs - Malawi compiles this
separately with data from NPISH Surveys that are
conducted annually
• The NPISHs consumption is compiled according
to COPNI whereas the private consumption and
the public consumption are compiled according
to COICOP and COFOG respectively.
Expert Group Meeting on Supply and Use Tables in support of the
ICP, Addis Ababa, Ethiopia, 24 – 28 October 2011.
Three approaches to compiling
GDP
• SUT methodology incorporates components of
the three approaches for measuring Gross
Domestic Product (GDP); the production
approach, the expenditure approach and the
income approach. This enables a single
estimate to be computed both in current and
volume terms.
Expert Group Meeting on Supply and Use Tables in support of the
ICP, Addis Ababa, Ethiopia, 24-28 October 2011.
Three approaches to compiling
GDP
• Most countries find it easier to estimate GDP
from the production side since data on
production is readily available compared to
expenditure or income data.
• Derivation of household final consumption as
a residual in the estimation of GDP from the
expenditure side is common practice in most
countries
Expert Group Meeting on Supply and Use Tables in support of
the ICP, Addis Ababa, Ethiopia, 24-28 October 2011.
Supply = Use
• Annual SUTs are easily compiled when data is
readily available
• Par 82 – The changes in inventory is just one
of the items that can be used to balance the
two sides. The other one is the Household
final consumption expenditure
• Most important – you adjust the less reliable
component
Expert Group Meeting on Supply and Use Tables in support of
the ICP, Addis Ababa, Ethiopia, 24-28 October 2011.
Practicability
• The chapter is practical enough since it is just
elaborating on the structure of the SUT
• As regards to applicability to African countries,
you find that most African countries have now
adopted the Supply and Use methodology as a
way of compiling their National Accounts and
as indicated in the comments above,
production data is readily available and
therefore compilation can easily be done
Expert Group Meeting on Supply and Use Tables in support of
the ICP, Addis Ababa, Ethiopia, 24-28 October 2011.
Practicability
• Data unavailability is one of the major
problems that most African countries face and
the SUT provides a framework in which the
available data can be reconciled.
– How do we deal with the problem of data
unavailablity?
• All in all, the SUT methodology is efficient and
reliable.
Expert Group Meeting on Supply and Use Tables in support of the
ICP, Addis Ababa, Ethiopia, 24-28 October 2011.
• THANK YOU FOR YOUR ATTENTION!!!!!!!
• ZIKOMO KWAMBIRI!!!!!!!!!
Expert Group Meeting on Supply and Use Tables in support of the
ICP, Addis Ababa, Ethiopia, 24 – 28 October 2011.