One measure of the importance of an industry is its contribution to the Australian economy. The size of the Australian economy is typically described in terms of GDP, and the structure and performance of the economy in terms of industry gross value added (GVA).
GDP is an estimate of the total market value of goods and services produced in Australia in a given period after deducting the cost of goods and services used up in the process of production (intermediate consumption), but before deducting consumption of fixed capital. This is also described as the unduplicated value of economic production. This measure avoids double counting the goods and services produced at successive stages of production. Accordingly, it is a measure of the value added in production.
Industry GVA is the term used to describe the unduplicated value of goods and services produced by individual industries. This measure removes the distortion caused by variations in the incidence of commodity taxes and subsidies across the output of individual industries. More information is provided in National accounts.
Table 13.3 provides details of industry GVA and GDP for 2001-02. Data are presented at a broad industry level, generally equating to the Division level of the Australian and New Zealand Standard Industrial Classification (ANZSIC) 1993. In the ANZSIC, individual businesses are assigned an appropriate industry category on the basis of their predominant activities.
In 2001-02, the value of Australian production (GDP) was $695,663m (in chain volume terms), an increase of 3.9% from 2000-01. The average annual rate of growth in GDP between 1991-92 and 2001-02 was also 3.9%. In 2001-02, the ratio of GDP to the estimated resident population (GDP per capita) was $35,693 per person.
Graph 13.1 shows industry GVA shares of GDP. The property and business services industry contributed the most to GDP (11.1% or $77,162m) in 2001-02. This was closely followed by the manufacturing industry (10.9% of GDP or $75,573m). The finance and insurance industry was the third most important industry in terms of contribution to GDP, contributing 6.7% or $46,943m.
Property and business services only recently became the most significant industry in terms of its contribution to GDP, moving ahead of the manufacturing industry for the first time in 2000-01. The property and business services industry includes marketing and business management services, technical services, legal and accounting services, computer services, and property operators and developers services.
Between 1991-92 and 2001-02, the greatest increase in industry GVA shares of GDP was for the property and business services industry (2.0 percentage points). The next biggest increases were for the communication services (0.9 percentage points) and wholesale trade (0.4 percentage points) industries.
In the same 10-year period, the greatest fall in relative shares of GDP was for the manufacturing industry (-1.6 percentage points). The next largest decreases in relative shares were for the education (-0.7 percentage points), government administration and defence (-0.6 percentage points), and electricity, gas and water supply (-0.5 percentage points) industries.
Movements in the chain volume measures of GDP and industry GVA (from which the direct effects of price changes have been removed) are important indicators of economic growth. More information on chain volume measures is provided in National accounts.
Graph 13.2 provides the average annual rate of growth in industry GVA (in chain volume terms) between 1991-92 and 2001-02. Average annual growth rates provide an indicator of the broad underlying behaviour of the annual series over several years. These averages, however, smooth annual movements in the series and disguise extremes in data (the highest and lowest values). In these terms, the communication services industry had the highest average annual rate of growth (8.4%), followed by the property and business services (6.1%) and wholesale trade (4.9%) industries.
The average annual growth rates shown were affected by year on year changes in levels between 1991-92 and 2001-02. In terms of year on year changes, the fastest growing industry in this period, the communication services industry, showed strong and relatively steady increases in GVA from 1991-92 to 1998-99. This was followed by slower growth in recent years. In the most recent period, 2000-01 to 2001-02, the communication services industry rose by 3.0%.
On average, the value of production (GVA) of the agriculture, forestry and fishing industry grew by 3.9% each year between 1991-92 and 2001-02. However, year on year growth in the value of this industry varied significantly over time. The GVA of the agriculture, forestry and fishing industry fell by 17.0% between 1993-94 and 1994-95 due to the effect of drought on agricultural production. This was followed by a good farm season in 1995-96 (up 23.5% from the previous financial year).
The value of production (GVA) of the construction industry also grew, on average, by 3.9% each year in the 10-year period 1991-92 to 2001-02. In terms of year on year growth, this series changed significantly in recent years. In the most recent period (2000-01 to 2001-02), the GVA of the construction industry grew by 11.7%. Increases in new house building and private engineering construction largely accounted for this rise. This growth followed a fall of 15.6% between 1999-2000 and 2000-01, coinciding with the introduction of The New Tax System (July 2000).
Table 13.3 provides estimates of the unduplicated production of goods and services (industry GVA) in 2001-02, along with percentage changes from 2000-01 and average annual rates of growth between 1991-92 and 2001-02.
13.3 PRODUCTION OF GOODS AND SERVICES(a), Chain volume measures(b)
Change from 2000-01
Average annual rate of growth
from 1991-92 to 2001-02
|Agriculture, forestry and fishing|
|Electricity, gas and water supply|
|Accommodation, cafes and restaurants|
|Transport and storage|
|Finance and insurance|
|Property and business services(c)|
|Government administration and defence|
|Health and community services|
|Cultural and recreational services|
|Personal and other services|
|Ownership of dwellings|
|Taxes less subsidies on products|
|(a) Industry GVA.|
(b) Reference year is 2000-01.
(c) Excludes ownership of dwellings.
|Source: Australian System of National Accounts, 2001-02 (5204.0).|