An Algorithm to Balance Supply and Use Tables

Technical Notes and Manuals, October 25, 2018

Source details

Supply and Use Tables (SUTs) serve to increase the quality of GDP and related aggregates by providing a framework to detect and resolve inconsistencies in data sources.
SUTs permit users to access information on detailed production functions, consumption, export, and import baskets, or to derive input-output tables.
SUT compilation is data intensive and requires a balancing process; the balancing procedure is labor intensive and generally requires several long and sometimes tedious iterations, which has an adverse effect on timeliness.

The note describes a basic algorithm developed by the IMF to balance supply and use tables automatically, allowing a much faster SUT balancing process.
Automation reduces the need for several long and sometimes tedious manual iterations, improving timeliness of SUT compilation.

For training purposes, the algorithm has been implemented as an Excel tool named SUTB, making it operational almost globally.
The optimization process is illustrated with an example in the note.

SUTs and the balancing algorithm support analyses of:
- detailed production functions
- household consumption
- exports and imports baskets
- derivation of input-output tables

Subject: Consumption, Exports, Household consumption, Imports, International trade, National accounts
Keywords: Consumption, Exports, GDP, Household consumption, Imports, input data, Input-Output Tables, secondary product, Supply and Use Tables, supply matrix, SUT algorithm, SUT balancing, SUT compilation, SUT framework, System of National Accounts 2008 (2008 SNA), TNM