Cayman Islands’ Publishes its first Input-Output Table and Economic Multipliers
The input-output (I-O) table of the economy presents a comprehensive and detailed outline of the sales and purchases of goods and services among producing industries and final consumers during a particular period of time. One key feature of input-output tables is its contribution to various demand multipliers, which typically show the effects of an exogenous change in an industry’s demand on final Output.
Domestic intermediate consumption (the use of output produced by another industry) accounts for the largest portion of gross output in most industries with construction, electricity production and hotels & restaurants having the largest intermediate consumption component.
The construction industry was estimated to have the largest output multiplier of 2.56 (suggesting that for every $1.00 of addiditional construction output demanded, total output in the economy would increase by $2.56). The income and employment multipliers for the construction industry were estimated to be 0.55 and 16, respectively. The income multiplier suggested that for every $1.00 of additional output demanded from the industry, total income from compensation across the economy would increase by $0.55. The employment multiplier estimates that for every $1 million dollars worth of construction output demanded, 16 additional workers would be demanded across the economy.
For more information on the “The Cayman Islands’ 2015 Analytical Input-Output Tables,” please visit www.eso.ky.