1. African Centre for Statistics United Nations Economic Commission for Africa Chapter 3 Supply Table (SUT Handbook) Derek Blades Resource Person May 2014

2. African Centre for Statistics Contents Domestic Production –Special cases »Government and NPISH gross output (CFC) »Retailers and wholesalers »Bank output »Insurance output Basic Prices and Purchasers’ Prices Transport costs and trade margins C.i.f. / f.o.b. adjustment Taxes and subsidies on products Purchases abroad by residents and purchases in the domestic market by non-residents Missing values –Poultry meat – household consumption,transport costs, trade margins, inventories

3. African Centre for Statistics Basic prices and Purchasers’ prices Moving from Basic prices to Purchasers’ prices Basic price PlusTransport costs invoiced to the purchaser PlusWholesale and retail trade margins Plus Taxes on products (such as sales taxes, customs duties, and value added taxes) minusSubsidies on products equalsPurchasers’ price

4. African Centre for Statistics Transport costs and trade margins Since freight transport costs and trade margins are now shown in columns in the Supply quadrant, there is a problem of double counting because trade and freight transport services are also included in the list of commodities that are produced or imported. Figure 3 in the text shows the counter-entries that are required to avoid double counting.

5. African Centre for Statistics C. I. F. / F. O. B. ADJUSTMENT In the SNA, both imports and exports are theoretically valued f.o.b. In practice exports are so valued but almost all countries record imports c.i.f. When imports are valued c.i.f. there is another double counting problem: The value of imported goods includes the transport and insurance services incurred in bringing them to the importing country, but these transport and insurance services will also be included either in domestic production if the transport and insurance services are provided by residents, or in imports (of services) if the transport and insurance services are provided by non-residents. Figure 4 in the text shows the adjustments required to avoid double counting freight and insurance services when, as is usually the case, imports are recorded c.i.f. Both an additional column and an additional row have to be introduced into the supply quadrant of the SUT.

6. African Centre for Statistics Purchases abroad by residents and purchases in the domestic market by non-residents In the SNA, household final consumption expenditure (HFCE) refers to the resident population. This means that: HFCE must include purchases abroad by residents and exclude purchases in the domestic market by non- residents. Exports must include purchases in the domestic market by non-residents, and imports must include purchases abroad by residents.

7. African Centre for Statistics Q UESTIONS - OMISSIONS Is the chapter clear? Does it help? Anything else to add?

8. African Centre for Statistics United Nations Economic Commission for Africa Thank you