A new tool offered by the National Statistics Office allows researchers to forecast the effect on local industries of a sudden increase in tourists or the assumed impact of Brexit, among other things.
The NSO has published what are known as the “supply, use and input-output” tables, which show the links between 128 product and 84 industry groups.
Director general Reuben Fenech, who believes that this tool will help policymakers in allocating resources more efficiently and businesses to make forward looking choices, drew an analogy with the body’s anatomy.
“Since we have a very good understanding of the body’s structure, we know that if you input a lot of alcohol, for example you’ll have liver and memory issues.
“In a similar way, this is a circuit with interlinked industries such as tourism, construction, and hotels and restaurants. Following a change in one of these industries, we can see the effect across the board in our economy,” he told this newspaper.
The tool will help analysts understand how the economy reacts to changes in the environment, investment and employment, among others.
Yesterday, senior university lecturer Ian Cassar presented a simulated impact of the...
