Chapter 11: Updating Supply and Use Table

1. Chapter 11: Updating Supply and Use Table By: E. Monica Magaua Ethiopia, October 2011

2. Introduction:SUT Measuring production in na economy is a complex but essential task for any statistician wanting to calculate GDP. To capture this process where input of labour, capital, G&S are used to produce outputs of G&S, one needs a vast amount of information. For this reason statisticians and economists use a statistical and analytical framework called supply, use tables.

3. Cont: Introduction • The supply table describes the supply of goods and services, which are either produced in the domestic industry or imported. • The use table shows where and how goods and services are used in the economy. They can be used either in intermediate consumption- meaning in the production of something else- or in final use, which in turn is divided into consumption, gross formation of capital and exports. • Supply and use table are a balancing framework that reconciles the three methods of GDP estimation that are used in National accounts.

4. SUT • The supply and use tables provide the main macroeconomic aggregates such as GDP, components of value added and output by industry, import, final consumption, gross capital formation and export • There are three accounts included in the SU tables: • Goods and services account • Production account • Generation of income account.

5. Goods and services account

6. Production and Generation of income accounts

7. Price concepts • It is important to know the differences among the existing prices: Basic prices • + Taxes on products • -subsidies on products =Producer´s prices • + trade margins • + transport margins • +non-deductible VAT =Purchaser´s prices

8. Updating SUT • According to this manual, updating can be done either manually or automatically. • Since I don´t have any knowledge of the automatic procedure,RAS, it is not quite easy to comment on it. • In the meanwhile, I am absolutely sure that it takes less time, so there is a need to understand the procedure in order to implement.

9. Pratical: Updating SUT • Mozambique compiles GDP yearly based on product balance, in the meanwhile, we do not publish a SUT yearly; the last two SUT published refered to 1996 and 1997. • (see excel file in attachment) • After reading the recommendations of this handbook, I found it helpful, so I guess we can start to publish SUT more frequently : • 1) The handbook says that trade margins don´t change a lot over the years, so one can use the information on trade margins from the base year and to use the same structure to the years with no information on it.

10. Applicability: SUT • Without having a good knowledge of RAS procedure, I just found aplicable the use of manual updating, although it will take much time due to existence of different industry worksheets. • At same time, I think it can only be applicable if the data sources are of the desirable quality. For Mozambican case, the data of Annual Enterprise Surveys is weak due to the response rate which is very low. Because of it, is not quite easy to obtain accurate figures of employment by industries and consequentely wages and salaries, and operating surplus.

11. Applicability: SUT • Without good data sources, probably we will use the guidelines of this handbook, which are very useful, to the benchmark (and reference ) years, because, for these years it is common to have a huge variety of data coming from surveys like Household Budget Survey, Agricultural Census, Labor Force survey, etc., including special studies like for example the ones related to trade and transportation margins among others.

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