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Handbook on Supply and Use Table Compilation: Good Practices

This handbook provides guidance on the structure and compilation of Supply and Use Tables (SUT), which are a transparent framework for compiling national accounts data on the production process. It covers topics such as classifications, treatment of incomplete or missing data, and deriving detailed breakdowns. Written by Inese Larue, National Bureau of Statistics (Seychelles).

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Handbook on Supply and Use Table Compilation: Good Practices

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  1. Expert Group MeetingUNECA – Addis Ababa 24 – 28 October 2011Handbook on Supply and Use TableCompilation, Application and Good Practices Chapter 4 Structure of Supply Use Table (SUT) Inese Larue National Bureau of Statistics (Seychelles) October 2011

  2. 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

  3. Supply • Source of goods and services available within the domestic territory / boundary originate from either: • Domestic Production • Imports Total Goods & Services Domestic Production Imports

  4. Uses How are the available goods and services used? Total Goods & Services Exports Intermediate Consumption Investment (GFCF) Final Consumption Expenditure Households Government NPISH

  5. 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

  6. 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)

  7. SIMPLIFIED SUT

  8. The Value Added Quadrant of SUT

  9. 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

  10. 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)

  11. 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?

  12. Thank you!

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