EXPENDITURE ON GDP
Final consumption expenditure was the major contributor to GDP growth in 2006-07, taking over from Private business investment which was a key driver in 2005-06. Total final consumption expenditure increased 3.8%, and contributed 2.9 percentage points to GDP growth.
Household final consumption expenditure increased 3.6% and contributed 2.1 percentage points to GDP growth in 2006-07. In recent years household consumption has contributed between 1.5 percentage points and 3.0 percentage points to GDP growth. The key components in 2006-07 were growth in expenditure on Rent and other dwelling services (up 3.7%), Transport (up 3.8%), Recreational and culture (up 3.7%), Furnishings and household items (up 7.6%). See Table 53 for more details.
Volume measures -
Government final consumption expenditure increased 4.5% in 2006-07. This series contributed 0.8 percentage points to growth in GDP, up from 0.4 percentage points in 2005-06.
Growth in private business investment slowed in 2006-07 after driving GDP growth in recent years. Private business investment increased 7.0% in 2006-07, compared with growth exceeding 12% for the previous four years. Private business investment contributed 1.0 percentage points to GDP growth in 2006-07, down from 2.1 percentage points in 2005-06. Investment in machinery and equipment increased 3.0% in 2006-07 after increasing by between 14% and 18% each year for the preceding four years. Non-dwelling construction investment increased by 13.0% in 2006-07 after rising 20.9% in 2005-06.
Private business investment,
Volume measures -
Investment in alterations and additions was up 4.8% in 2006-07, with a minor increase of 0.5% for new dwellings following decreases in the previous two years. Total dwelling investment increased 2.5% and contributed 0.2 percentage points to GDP growth.
Public gross fixed capital formation rose 2.8% in 2006-07 after increasing by more than 8.0% each year for the preceding 2 years. Investment by public corporations fell 3.1% and general government increased by 7.1%. Public investment contributed 0.1 percentage points to GDP growth in 2006-07, down from 0.4 percentage points in 2005-06.
Growth in the domestic economy as measured by Gross National Expenditure (GNE) (footnote 2) showed an increase of 4.2%. Over the past five years GNE has been growing at a faster rate than GDP. This is reflected in net exports (the difference between exports and imports of goods and services) detracting from growth in GDP. For more information on net exports please refer to the section on international trade.
GDP and GNE
2 The total expenditure within a given period by Australian residents on final goods and services. Back