African Centre for Statistics United Nations Economic Commission for Africa Expert Group Meeting on Handbook of Supply and Use Table: Compilation, Application, and Good Practices Chapter 4 - Structure of SUT Economic Statistics and National Accounts Section, ACS 24 – 28 October 2011 Addis Ababa, Ethiopia

African Centre for Statistics Outline of Presentation Descriptions of a simplified SUT Uses of the SUT Value Added Quadrant of the SUT Comments and suggestions Points for discussion

African Centre for Statistics Simplified Supply and Use Table

African Centre for Statistics Simplified Supply and Use Table (cont’d) DP – Comes mostly from enterprises. it also includes the services produced by government IMP and EXP include goods and services IC includes all the goods and services that are used up in DP NPISH include trade unions, political parties, religious and charitable organisations, sporting and recreational associations. SNA recommends that consumption expenditures of NPISH should be shown separately GFCF is broken down into residential and non-residential buildings, other construction, machinery and equipment, increase in stocks of certain types of farm animals, purchases and development of computer software, and the costs of mineral exploration

African Centre for Statistics Simplified Supply and Use Table (cont’d) Change in inventories could be positive or negative, it ensures that the two sides of the SUT will always be equal SUT can be written as an equation DP + IMP = IC + GFCE + HFCE + NPISH + GFCF + Δ INV + EXP(1) DP – IC = GFCE + HFCE + GFCF + NPISH + Δ INV + EXP - IMP (2) Where DP – IC is GDP (P) GFCE + HFCE + GFCF + NPISH + Δ INV + EXP – IMP is GDP (E)

African Centre for Statistics Uses of SUT SUT generates GDP (P) and GDP (E) simultaneously and they must always be equal Accuracy of GDP (P) and GDP (E) is enhanced as compilation of SUT involves balancing supply and use at detailed commodity level Estimating GDP through SUT is the best way to make sure that both GDP (P) and GDP (E) are equal Most countries find it easier to make their first GDP estimates especially from the production side If uses are estimated independently of supply, there will be statistical discrepancy between GDP (P) and GDP (E) GDP (E) is considered to be the less reliable estimate of GDP but useful for policy purposes Most developed countries now derive their regular GDP estimates though annual SUT

African Centre for Statistics Value Added Quadrant of SUT The SUT can be expanded by adding a third quadrant which is the value added quadrant The value added quadrant is obtained as DP - IC DP, IC, Value Added could be broken down by kind of activity classification Only total value added by kind of activity is obtained from the SUT Value added quadrant adds to analytical value of SUT Value added quadrant is not an integral part of SUT, it rather be seen as an appendix

African Centre for Statistics Value Added Quadrant of SUT (cont’d)

African Centre for Statistics Comments and Suggestions The chapter is clear and easy to understand Figures are helpful in explaining the concepts However, The chapter is very short. If possible it may be good to put related chapters such as 4,5 and 6 together It may be good to indicate in one sentence the main sources for the components of value added and labour input

African Centre for Statistics Points for Discussion Is there any country that derive regular GDP estimates through annual SUT? If not in how many years interval are GDP estimates derived through SUT? Could the chapter be combined with related chapters or left as presented? Are there any important missing points that should be included in the Chapter?

African Centre for Statistics Thank You