Supply, Use and Input-Output Tables

The calculation of the Gross Domestic Product (GDP) hinges on the way production in an economy is measured. An elaborate economic tool is required to assess how the inputs (labour, capital, goods and services) are used in the production of outputs (goods and services). The tool is more formally known as the supply, use and input-output tables, which the National Statistics Office (NSO) is publishing for the year 2010.

Supply and Use Tables

Three different approaches are used to determine the GDP, which in principle should give the same result namely: the production, the income and the expenditure approach. However, the three methods seldom generate the same results. The supply and use tables offer a concrete framework for the integration of the three approaches to calculating GDP.

The supply table records how supplies of different kinds of goods and services are either produced in the domestic industry or imported. On the other hand, the use table shows how those supplies are allocated between various intermediate or final uses, including exports.

From the supply tables compiled by NSO, it emerges that in 2010, the largest product groups produced in the Maltese economy are manufactured products (including energy) and financial and insurance products. These represented 19.0 per cent and 17.9 per cent respectively of total output. Other important product groups produced in 2010 are professional, arts, entertainment and recreation and administrative and support service representing 9.5 per cent, 9.1 per cent and 8.0 per cent of total output (Chart 1).

Chart 1: Supply Table

 
Input-Output Tables
Symmetric input-output tables shed light over the sale and purchase relationships between producers and consumers, enabling the study of inter-industrial relationships within the domestic economy and the calculation of multipliers. Multipliers enable the analysis of the impact of a hypothetical increase in demand for a particular industry on the demand for other industries. 

The input-output tables for 2010 show that for every €1 of output produced, €0.67 of intermediate costs - defined as the costs of goods and services purchased and consumed as inputs by a process of production - are required (Chart 2).

Chart 2: For every €1 of output produced


Moreover, from the input-output tables it also transpires that:
  • 67.8% of intermediate costs are spent on service product groups;
  • for every €1 of output generated, local producers pay €0.44 to foreign producers on imports and €0.16 in the form of compensation to employees.

Output multipliers for 2010, are strongest in the service industries. Put differently, a €1 additional expenditure in the service industries will have a stronger impact on total output generated in the Maltese economy than the same additional expenditure in the production industries. The output of service industries makes up 76 per cent of total domestic production and the range of output multipliers for these activities span from 1.65 for hotels and restaurants to 1.05 for financial and insurance activities. For industry, including energy and construction, the range stands at 1.70 for construction to 1.39 for production activities (Chart 3).




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For further information:

Dissemination Unit
National Statistics Office
Lascaris
Valletta​
Tel: (+356) 25 99 72 19
Email: nso@gov.mt