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# Expert Group Meeting Handbook on Supply and Use Table

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```									      Expert Group Meeting
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
Imports
Production
Uses
How are the available goods and services used?

Total Goods &                     Exports
Intermediate
Consumption                          Services

Investment
(GFCF)
Final Consumption Expenditure

Households           Government              NPISH
Supply=Use ?????
Supply = Use?????

• If Total Supply = Total Use then the 2 sides
should balance. J
• 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      =                                 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                                  USES

DOMESTIC PRODUCTION                 INTERMEDIATE CONSUMPTION
IMPORTS                                     OTHER
(DP)                                   (IC)
(IMP)                                      USES
by kind of activities                   by kind of activity

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

• Surveys (cost & time factors)