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30 ^th November 2005
A Scottish Executive National Statistics Publication
ISBN 0 7559 1275 6 (Web only publication)
This document is also available in pdf format (284k)

The Input-Output Tables and Multipliers for Scotland 2002 are published today on the Scottish Executive website.

Input-Output tables provide a detailed snapshot of the relationships between supply and demand that exist within the economy. The tables show the industry linkages within the Scottish economy, between Scotland and the rest of the UK and Scotland and the rest of the world. They are mainly used by academics and other analysts to inform economic policy, to produce detailed analysis of the Scottish economy and to estimate the impact of various economic events.

The tables are produced to a high level of statistical detail, showing trade between 128 domestic industry groups and 10 types of final consumer. A summary of the tables, together with the main facts from each table is below.

Supply table

The supply table (table 1) shows the commodities (goods and services) produced by each industry and illustrates the relationships between the output of products and the output of industries. Further information about the supply table is available at http://www.scotland.gov.uk/Topics/Statistics/14713/454.

The main points from the table were:

• Total gross output from Scottish industries in 2002 at basic prices ( i.e. excluding product taxes and distributors trading margins) was £154.5 billion. Total output is equal to Gross Value Added ( GVA) (taxes, compensation of employees and gross operating surplus) plus intermediate consumption (products which the industries consume in order to produce their output).
• Of gross output, 24 per cent was produced by the finance & business sector (which includes financial intermediation, real estate, renting and business activities), 21 per cent by the manufacturing sector, 12 per cent by the distribution and catering industry, and 11 per cent is produced by the education, health and social work sector.

Use matrix

The use matrix (table 2) shows the purchases of commodities and primary inputs used in each industry's production process and therefore presents a comprehensive description of the domestic production functions of Scottish industries. It also shows the purchases of each domestic product by each category of final demand. Further information about the use matrix is available at http://www.scotland.gov.uk/Topics/Statistics/14713/467 .

The main points in 2002 were:

• Gross Value Added ( GVA) at current basic prices was £74.1 billion in 2002. Of this, the finance & business GVA accounted for the most (£18.1 billion), followed by the manufacturing sector (£11.9 billion), the distribution and catering sector (£11.5 billion) and the education, health and social work sector (£10.8 billion).
• GVA is made of up of employee costs, taxes less subsidies on production and gross operating surplus. Compensation of employees forms the largest contribution to total GVA, but the proportion varies across industries, from 90 per cent for the education, health and social work sector, to 32 per cent for the energy & water sector. In contrast, the proportion of GVA made up by gross operating surplus varies from 71 per cent for the agriculture, forestry and fishing sector to 10 per cent for the education, health and social work sector.
• Total supply (domestic output plus imports) at purchaser's prices for 2002 was £221 billion. Of this, 36 per cent (£80.4 billion) was consumed by Scottish industries, 26 per cent (£58 billion) by consumers, 21 per cent (£47 billion) was exported and 10 per cent (£22 billion) was consumed by government.

The supply and use matrices provide an analysis of goods and services (commodities) produced and consumed by industries. For the analysis of industry linkages, it is more meaningful to represent the use matrix in an industry by industry format.

Industry by Industry

The industry by industry table (table 3) shows the destination of industry output and so allows users to analyse linkages between industries. More information about the symmetric matrices can be found at http://www.scotland.gov.uk/Topics/Statistics/14713/457. Industries vary in how they transact with other industries in Scotland. For example:

• 73 per cent of manufacturing output was exported to the rest of the UK and the rest of the world.
• 37 per cent of agriculture, forestry & fishing's output was purchased by the manufacturing industry, which was more than the percentage purchased by any other sector, including agriculture, forestry & fishing itself.
• Of the products purchased by the energy and water industry 69 per cent are from the same industry, compared to 1 per cent in the public administration industry, and 6 per cent in the distribution and catering industries.
• The mining, distribution & catering, and public administration sectors purchased the majority of their products from the finance & business industry.

Trade Estimates

The exports data in the IO tables for 2002 were based on detailed analysis of the Global Connections Survey, which was first introduced that year.

• Total exports in basic prices in 2002 were valued at £45.9 billion. This was made up of £28.7 billion to the rest of the UK and £17.2 billion to the rest of the world.

• Total tourism spend on domestic products in Scotland was £1.9 billion at basic prices.
• Total imports to Scotland in basic prices in 2002 were £57.1 billion. Of this, imports from the rest of the world were £20.4 billion and imports from the rest of the UK were
  £36.7 billion.
• A comparison of the trade estimates at basic prices ( i.e. exports including tourism minus imports) between Scotland and the rest of the UK and rest of the world shows a deficit of £9.3 billion.

BACKGROUND NOTES

1. The Input-Output Tables and Multipliers for Scotland 2002 may be found on the Scottish Executive website at: http://www.scotland.gov.uk/input-output

2. The tables provide industry weights which are key to the production of the Executive's chainlinked quarterly GDP series. The estimation of Gross Value Added is fully harmonised with the Office for National Statistics Regional Accounts estimates and the Scottish GDP series. Gross Domestic Product ( GDP) at basic prices is commonly referred to as GVA.

3. The Scottish Input-Output tables are derived from a variety of sources. However, because of definitional differences between the sources, and the need for the tables to be balanced, the final figures shown in the tables may not match those in the original source data. The data are internally consistent and constrained to a number of control totals. The methods and sources used to produce the tables are subject to continuous improvement. For the first time, the Global Connections Survey, an SE survey which began in 2002 to provide estimate for the value of exports from Scotland, has been incorporated within the tables. In addition, in order to be consistent with the 2002 UK Input-Output tables, the NHS Trusts have been reclassified from the public, non-financial corporation sector to the central government sector.

4. Due to the methodological improvements, the tables are not comparable with any set of tables produced in previous years. It is planned that a comparable set of tables will be produced in the future.

5. As part of the Input-Output analysis, multipliers and the Leontief inverse matrix are produced. These can be used to look at the impact of a specific event on the Scottish economy - for example the opening or closure of a company, or to analyse economy-wide changes, such as an increase in household consumption.

6. A comprehensive range of official information on the Scottish economy is provided in the latest edition of Scottish Economic Statistics ( http://www.scotland.gov.uk/stats/ses/ses-00m.asp).

7. National Statistics are produced to high professional standards set out in the National Statistics Code of Practice. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from political interference.

Issued by

Office of the Chief Economic Adviser
Office of the Permanent Secretary
St Andrew's House
Regent Road
Edinburgh EH1 3DG

Telephone
Press Office:
Claire Delaney
0131-244-2547
Statistician:
Donna Hosie
0131-244-3767

Tables
Tables also available in Excel format (48k)
Table 1 - Aggregate Supply Table 2002 (Output at basic prices and Supply at purchasers' prices) £ million
Table 2 - Aggregate Domestic Use Matrix 2002 (Purchasers' Prices) £ million
Table 3 - Aggregate Industry by Industry 2002 (Basic Prices) £ million

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