5220.0 - Australian National Accounts: State Accounts, 2016-17 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 17/11/2017   
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ANALYSIS OF RESULTS


GROWTH IN GSP VOLUME MEASURES

The volume measure of Gross State Product (GSP), which is the headline measure of state economic activity, increased in all states except Western Australia in 2016-17. The Australian Capital Territory (4.6%), the Northern Territory (4.0%), Victoria (3.3%), New South Wales (2.9%) and South Australia (2.2%) all exceeded Australia’s national Gross Domestic Product (GDP) growth rate of 2.0%.

GROSS STATE PRODUCT ANNUAL GROWTH 2016-17
Map shows Gross State Product Annual Growth for 2016-17



Western Australia’s GSP declined 2.7%. Despite being the only state to record declining growth in 2016-17, Western Australia has averaged annual growth of 3.9% over the past ten years, the strongest of all the jurisdictions. This growth over the past decade is attributed to large mining investment, which has significantly fallen this year.

GROSS STATE PRODUCT, Volume measures
Graph shows Gross State Product Volume Measures

GSP PER CAPITA

Population growth rates across states explain some differences in GSP growth, it is therefore useful to analyse movements in GSP per capita. This publication includes updated estimates of population based on the 2016 Census of Population and Housing. In 2016-17 the Australian Capital Territory and the Northern Territory showed the highest growth in GSP per capita. A fall in Western Australia demonstrate that population growth was higher than growth in GSP in this state.

GSP PER CAPITA

Graph shows GSP PER CAPITA



REAL GROSS STATE INCOME

While GSP measures domestic production, the real purchasing power of income generated by that production is affected by changes in the prices of international and interstate imports and exports. Real gross state income (RGSI) adjusts GSP for these changes in a state's Terms of trade (for details on the calculation method see the Explanatory Notes, paragraphs 26 - 28).

All states and territories recorded higher RGSI, reflecting the increasing Terms of trade at the national level in 2016-17. The highest increases were shown in Queensland (7.5%) and Northern Territory (6.4%) in line with the higher volumes produced and prices received for mining commodities.

REAL GROSS STATE INCOME

Graph shows REAL GROSS STATE INCOME


INDUSTRY GVA CONTRIBUTION TO GROSS STATE PRODUCT GROWTH

NSW
Vic.
Qld
SA
WA
Tas.
NT
ACT
Aust.(a)
% pts
% pts
% pts
% pts
% pts
% pts
% pts
% pts
% pts

2016-17
Agriculture, forestry and fishing
0.2
0.4
0.3
1.4
0.5
0.5
0.2
0.0
0.4
Mining
0.0
0.0
0.1
-0.3
0.5
-0.4
0.4
0.0
0.1
Manufacturing
0.1
-0.2
-0.2
0.0
-0.3
-0.1
0.2
-0.1
-0.1
Electricity, gas, water and waste services
0.0
0.1
0.0
0.1
-0.1
0.1
0.0
0.1
0.0
Construction
0.2
0.4
-0.2
-0.5
-2.8
-0.3
0.8
0.4
-0.3
Wholesale trade
0.3
0.3
0.2
0.3
0.1
0.3
0.1
0.0
0.3
Retail trade
0.1
0.1
0.1
0.1
0.0
0.1
0.0
0.1
0.1
Accommodation and food services
0.1
0.1
0.0
0.0
-0.1
0.1
0.1
0.0
0.0
Transport, postal and warehousing
0.0
0.2
0.2
0.1
0.0
-0.2
-0.1
0.1
0.1
Information media and telecommunications
0.2
0.0
0.0
0.1
0.0
0.0
0.0
0.4
0.1
Financial and insurance services
0.5
0.2
0.3
0.1
0.4
-0.8
0.2
0.1
0.3
Rental, hiring and real estate services
0.1
0.1
0.1
0.1
0.0
0.0
0.0
0.1
0.1
Professional, scientific and technical services
0.7
0.7
0.3
-0.1
-0.7
0.0
1.1
2.7
0.4
Administrative and support services
-0.1
0.1
0.1
0.0
-0.1
0.0
0.4
0.1
0.0
Public administration and safety
0.1
0.3
0.1
0.1
-0.3
0.8
0.2
0.0
0.1
Education and training
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
Health care and social assistance
0.3
0.3
0.5
0.5
0.3
0.7
0.2
0.7
0.4
Arts and recreation services
0.0
0.0
0.0
0.0
0.0
-0.1
0.1
0.0
0.0
Other services
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
Ownership of dwellings
0.2
0.2
0.2
0.2
0.1
0.4
0.6
0.2
0.2
Taxes less subsidies on products
0.1
0.1
0.1
0.1
0.0
0.0
0.1
0.0
0.1
Statistical discrepancy
-0.3
0.1
-0.3
0.0
-0.1
0.0
-0.3
-0.4
-0.2
Gross state product
2.9
3.3
1.8
2.2
-2.7
1.1
4.0
4.6
2.0

- nil or rounded to zero (including null cells)
(a) Gross domestic product.


A record wheat harvest along with desirable growing conditions resulted in Agriculture, Forestry and Fishing contributing 0.4 ppt to Australian economic growth in the 2016-17 year. This strength in wheat and other agriculture was strongly observed in Western Australia, South Australia and Victoria which all recorded growth above 15% for the industry.

Services to business have been a continual growth area for the Australia economy resulting in Professional, Scientific and Technical Services contributing 0.4pp to economic growth in 2016-17. As expected this was most evident in New South Wales and Victoria, states with a high proportion of corporate activity. The Australian Capital Territory and the Northern Territory also recorded strong growth in this industry, reflecting a pick-up in business consulting.

Health Care and Social Assistance also contributed 0.4 ppt to growth in 2016-17. This industry contributed strongly to the growth observed in Queensland, South Australia and Tasmania.


STATE FINAL DEMAND (SFD)

State Final Demand is a measure of domestic demand in the economy. State final demand increased in all states except Western Australia.

STATE FINAL DEMAND, Chain volume measures

2016-17
2015-16
2016-17
SFD Growth
Contribution to DFD
%
% pts

New South Wales
537,852
556,233
3.4
1.1
Victoria
409,772
425,579
3.9
0.9
Queensland
323,091
330,867
2.4
0.5
South Australia
106,026
108,992
2.8
0.2
Western Australia
215,866
200,256
-7.2
-0.9
Tasmania
30,924
31,185
0.8
0.0
Northern Territory
27,768
30,046
8.2
0.1
Australian Capital Territory
44,799
46,141
3.0
0.1
Australia
1,696,097
1,729,297
2.0
2.0

- nil or rounded to zero (including null cells)
(a) Domestic final demand.


HOUSEHOLD FINAL CONSUMPTION EXPENDITURE (HFCE)

In current prices, SFD growth was driven by an increase in HFCE for all states except Western Australia. Victoria, South Australia, New South Wales and the Australian Capital Territory, all grew by more than the national total (3.0%). This spending by the household sector is broadly in line with annual estimates of Compensation of Employees (COE), the major source of income for the household sector. The strength in COE is supported by the increases reported in employment and actual hours worked during the 2016-17 year. As shown below, low or negative growth in COE is reflected with weak or declining HFCE for Tasmania (1.0%) and Western Australia(-0.2%).

HOUSEHOLD FINAL CONSUMPTION EXPENDITURE and COMPENSATION OF EMPLOYEES,
Current prices
Graph shows HOUSEHOLD FINAL CONSUMPTION EXPENDITURE and COMPENSATION OF EMPLOYEES



PUBLIC GROSS FIXED CAPITAL FORMATION

State and Local General Government GFCF increased in all states except Queensland which fell only by 0.2%. Of the states that grew, South Australia had the largest increase due to the purchase of the Royal Adelaide Hospital, while Victoria (28.3%) and the Australian Capital Territory (21.6%) grew strongly on the back of higher infrastructure spending.

STATE AND LOCAL GROSS FIXED CAPITAL FORMATION,
Volume measure
Map shows STATE AND LOCAL GROSS FIXED CAPITAL FORMATION



PRIVATE GROSS FIXED CAPITAL FORMATION

Private GFCF grew in five of the eight states, predominately on the strength of dwelling construction. Growth in high density dwellings contributed to the Australian Capital Territory, recording the strongest result, followed by New South Wales and Victoria. Dwelling construction fell in the Northern Territory but overall private GFCF still grew. This was due to strength in business investment as expenditure in the mining industry continued at high levels.

PRIVATE GROSS FIXED CAPITAL FORMATION,
Volume measure
Graph shows PRIVATE GROSS FIXED CAPITAL FORMATION