1360.0 - Measuring Australia's Economy, 2003  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 03/02/2003   
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Contents >> Section 2. Summary Measures of Economic Activity >> Gross Domestic Product Account

The trend ratio of compensation of employees to total factor income (the wages share) was at its lowest point in the last 10 years in the June quarter 1993, when it stood at 53.0%. By December quarter 1996 the ratio had risen to reach 55.3%, its highest level for the 1990s. The ratio in June quarter 2002 was 53.3%. Movements in the trend ratio of gross operating surplus for financial and non-financial corporations to total factor income (the profits share) tend to be inverse to the movements in the wages share as wages and corporate profits are the two major components of total factor income. The profits share recorded its highest value during the last 10 years of 24% in the September and December quarters 1993, and in the June quarter 2002.




GROSS DOMESTIC PRODUCT, Current Prices - Annual
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
$m
$m
$m
$m
$m
$m
Final consumption expenditure
410,738
436,433
463,164
492,750
527,787
559,494
Gross fixed capital formation
Private
95,038
108,724
112,828
123,899
115,875
128,503
Public
22,551
20,748
24,876
25,154
25,825
27,982
Domestic final demand
528,326
565,905
600,868
641,803
669,487
715,979
Changes in inventories
-10
62
5,152
1,760
1,873
1,320
Gross national expenditure
528,316
565,967
606,020
643,563
671,360
717,299
Exports of goods and services
105,160
113,744
112,025
125,972
153,511
152,219
less Imports of goods and services
103,590
118,482
126,453
140,323
152,636
154,194
Statistical discrepancy (E)
0
0
0
0
0
649
Gross domestic product
529,886
561,229
591,592
629,212
672,232
715,973
Compensation of employees
257,968
268,912
287,086
302,312
322,049
337,381
Gross operating surplus
161,658
176,833
181,186
196,137
206,021
221,446
Gross mixed income
48,500
50,929
53,590
57,666
61,156
68,345
Total factor income
468,126
496,674
521,862
556,115
589,226
627,172
Taxes less subsidies on production and imports
61,760
64,555
69,730
73,094
83,005
88,193
Statistical discrepancy (I)
—
—
—
—
—
608
Gross domestic product
529,886
561,229
591,592
629,212
672,232
715,973
MEMORANDUM ITEM
Average compensation per employee (14)
36,422
37,435
38,909
40,068
41,572
43,069
Source: Australian National Accounts: National Income, Expenditure and Product (5206.0).

Explanatory Notes

The gross domestic product account is a consolidated summary account of all the production activity which takes place in Australia. It records the incomes generated in the production process and the value of final goods and services produced.

On the expenditure side the gross domestic product account records sales of goods and services (including goods produced for own use) to final domestic consumers, gross fixed capital formation, changes in inventories and exports minus imports.

The income side of the gross domestic product account shows compensation of employees (wages and salaries paid to employees for producing goods and services), gross operating surplus (the income of corporations, general government and dwellings owned by persons from production), gross mixed income (the income of unincorporated enterprises from production) and taxes less subsidies on production and imports paid to general government.

The gross domestic product account is analogous to accounts used in business accounting and is, in effect, a consolidation of the trading accounts of individual enterprises from all sectors.


Further Reading

Australian National Accounts: Concepts, Sources and Methods (5216.0)
Contains a detailed explanation of the system of Australian national accounts outlining major concepts and definitions.

Australian National Accounts: National Income, Expenditure and Product (5206.0)
Provides a detailed presentation of quarterly national accounts for both current prices and chain volume measures in original, seasonally adjusted and trend terms.

Australian System of National Accounts (5204.0)
Contains a comprehensive range of annual national accounts data.



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