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 Domestic Production Imports Total Goods & Services

Uses How are the available goods and services used? Exports Intermediate Consumption HouseholdsGovernmentNPISH 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 TOTAL SUPPLY AND USE USE DOMESTIC PRODUCTION (DP) IMPORTS (IMP) FINAL CONSUMPTION EXPENDITURE CAPITAL FORMATION IMTERMEDIATE CONSUMPTION (IC) GOVERNMENT (GFCE) HOUSEHOLDS (HFCE) NON-PROFIT INSTITUTIONS SERVING HOUSEHOLDS (NPISH) GROSS FIXED CAPITAL FORMATION (GFCF) CHANGE IN INVENTORIES EXPORTS (EXP) Goods 1 2 … Services 1 2 … TOTAL

SUPPLYUSES 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!