As well as Australia's national accounts, the ABS produces annual accounts for each of Australia's states and territories. These provide estimates of state final demand and gross state product (GSP). GSP is produced by summing the incomes generated in the production process (the income approach to measuring total production). State final demand is equal to the sum of government and household final consumption expenditure and public and private gross fixed capital formation.
An important use of state accounts is to compare the performance of each state and territory (table 30.15). The volume measure of GSP in 2005-06 increased in all states. The Northern Territory experienced the strongest growth (up 7.5%) followed by Queensland and Western Australia (both up 4.9%). New South Wales showed the weakest growth rate in 2005-06 of 1.4%. Growth in New South Wales, South Australia and Victoria were below the Australian GDP growth rate of 2.8%.
30.15 GROSS STATE PRODUCT(a)
2004-05 to 2005-06
1995-96 to 2005-06(b)
|New South Wales |
|South Australia |
|Western Australia |
|Northern Territory |
|Australian Capital Territory |
|(a) Volume measures. |
|(b) Average annual compound rate. |
|(c) Gross domestic product. |
|Source: Australian National Accounts: State Accounts (5220.0). |
For some analytical purposes it is important to allow for the impact of population growth on movements in GSP. The annual growth in GSP per person was lower than GSP growth for all states. Five states showed growth rates in GSP per person that were stronger than the Australian growth rate of 1.5%. The Northern Territory (up 5.4%) showed the strongest growth in GSP per person, with Western Australia (up 3.0%) the next highest. New South Wales had the weakest growth in GSP per person of 0.5% (graph 30.16).
30.16 Growth in GSP per person(a) -