Appendix 2A The presentation of product and output in the Canadian System of National Accounts Input-Output Tables

2A.1 In the Canadian System of National Accounts, the estimates of GDP for Canada and the regions are shown in two sets of accounts: the Input-Output Tables (IOT) and the Income and Expenditure Accounts (IEA). These two accounts are inter-related. For the purposes of this guide, data from a hypothetical economy are used to illustrate the structure and logic of each of these accounts.

Output and product in the Input-Output Tables

2A.2 The Canadian Input-Output Tables consist of three matrices that describe the output and the uses of goods and services by the different industries and final demand, during a given period.

Overview of the Input-Output Tables

2A.3 The data of the hypothetical economy are presented in three matrices: the output matrix, the use matrix and the final demand matrix.

2A.4 The output matrix shows the goods and services produced by each industry (Table 2A.1). The column totals indicates the output of each industry. The row totals show the output of each good in the economy. The output of the economy as a whole is measured by the sum of the outputs of the industries or the sum of the output of goods and services.

2A.5 The use matrix represents the technology used by an industry to produce the output. It details the cost structure of production. For each industry, the uses of intermediate inputs (goods and services) and primary inputs (which include not only factors of production such as wages, salaries and supplementary labour income and operating surpluses but also net indirect taxes on primary factors like property taxes and payroll taxes). The sum of primary inputs is equivalent to value added at basic values (Table 2A.2).

2A.6 The final demand matrix displays the final uses of the goods and services in the economy (Table 2A.3). In other words, goods and services may either enter into the production of other goods and services or be consumed by final users. In the former case, we have intermediate consumption of goods and services, found in the use matrix. In the latter case, we have final consumption of goods and services, including the following:

• personal expenditure on consumer goods and services;
• government current expenditure on goods and services;
• government and business gross fixed capital formation;
• government and business investment in inventories; and
• net international exports of goods and services (exports minus imports).

2A.7 This information is found in the final demand matrix (Table 2A.3).

The three ways of measuring GDP in Input-Output Tables

2A.8 In the Input-Output Tables, GDP can be presented in the three ways. GDP by the income approach obtained by summing the profits and wages in the use matrix and the final demand matrix (Table 2A.4). It therefore constitutes the total primary inputs used in the production process.

2A.9 GDP by the final expenditure approach is obtained by summation of the final demand matrix of Table 2A.5. The final demand categories are related to the final expenditure aggregates in the Income and Expenditure Accounts.

2A.10 GDP by the value added approach is obtained by taking the difference between the intermediate expenses (in the use matrix) from production (in the output matrix) in Table 2A.6. Value added is calculated by industry as well as summed over the industries for the economy as a whole.

GDP in the Income and Expenditure Accounts

2A.11 In the Income and Expenditure Accounts (IEA), GDP is measured using both the income approach and the expenditure approach. The data on the hypothetical economy are presented in Table 2A.7 as in the IEA. Readers familiar with the IEA will recognize this as a simplified version of Tables 1 and 2 of the publication National Income and Expenditure Accounts.

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• Appendix 2B Interest and miscellaneous investment income in the income and outlay accounts of the institutional sectors

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• 2.3 Other aspects to the Income and Expenditure Accounts data
• 2 Concepts and definitions