Australian Bureau of Statistics
Celebrating the International Year of Statistics 2013

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VALUE OF GOODS AND SERVICES PRODUCED BY AUSTRALIAN INDUSTRY

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. Movements in the volume measures of GDP and industry GVA (from which the direct effects of price changes have been removed) are key indicators of economic growth. More information is provided in the National accounts chapter.

Table 13.1 provides details of industry GVA and GDP for 2004-05. 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 edition (1292.0). In the ANZSIC, individual businesses are assigned an appropriate industry category on the basis of their predominant activities. The table provides estimates of the unduplicated production of goods and services (industry GVA) from 2000-01 to 2004-05.

In 2004-05 the value of Australian production (GDP) was $858 billion (b) (in volume terms), an increase of 2.3% from 2003-04. In 2004-05 the ratio of GDP to the estimated resident population (GDP per person) was $42,437.

13.1 INDUSTRY GROSS VALUE ADDED(a)(b) AND GROSS DOMESTIC PRODUCT(b)
ANZSIC Division(c)	2000-01	2001-02	2002-03	2003-04	2004-05
	$m	$m	$m	$m	$m
Agriculture, forestry and fishing	26,045	26,865	20,564	27,010	25,362
Mining	35,664	35,688	35,608	34,366	35,707
Manufacturing	90,878	92,808	96,277	97,103	96,144
Electricity, gas and water supply	18,624	18,491	18,663	18,816	18,943
Construction	36,871	41,276	47,950	51,117	53,024
Wholesale trade	36,073	37,034	38,786	40,675	41,926
Retail trade	43,463	45,729	47,790	50,278	52,412
Accommodation, cafes and restaurants	16,063	16,055	16,625	17,560	18,383
Transport and storage	31,798	32,947	35,270	36,851	38,701
Communication services	20,172	20,780	22,092	22,756	23,799
Finance and insurance	52,229	53,932	54,984	57,496	58,567
Property and business services(d)	87,144	91,566	94,679	97,997	99,153
Government administration and defence	29,740	31,016	31,879	32,392	33,521
Education	34,919	35,530	36,062	36,530	36,987
Health and community services	43,474	45,840	47,870	49,509	51,793
Cultural and recreational services	9,898	9,949	10,306	10,901	11,736
Personal and other services	13,778	14,334	14,626	14,834	15,033
Ownership of dwellings	59,305	61,585	64,128	66,659	69,424
Gross value added at basic prices(e)	686,212	711,609	733,235	762,850	780,616
Gross domestic product	752,434	780,817	806,161	838,251	857,765
(a) At basic prices. (b) Volume measures. Reference year is 2003-04. (c) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 edition. (d) Excludes ownership of dwellings. (e) Volume measures for years other than 2003-04 and 2004-05 are not additive.
Source: Australian System of National Accounts, 2004-05 (5204.0).

Graph 13.2 shows the average annual rate of growth in GVA (in volume terms) for individual industries between 1994-95 and 2004-05. The Communication services industry had the highest average annual rate of growth (6.4%), followed by the Property and business services and Construction industries (both 5.1%).

While average annual growth rates provide an indicator of the broad underlying behaviour of the annual series over several years, these averages smooth the annual movements in the series and mask the highest and lowest movements. 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 1994-95 to 1998-99. After this period, the year-on-year increases were much lower. In 2004-05 GVA of the Communication services industry rose by 4.6%.

The year-on-year changes for the Agriculture, forestry and fishing industry also varied significantly over time. While the GVA of this industry grew by 4.5% on average each year between 1994-95 and 2004-05, it fell by 24% in the period 2001-02 to 2002-03, due largely to the effects of drought on agricultural production. This was followed by strong growth between 2002-03 and 2003-04, immediately following the 2002-03 drought.

Another industry that has had significant variation in year-on-year changes, especially in recent years, is the Construction industry. In the period 2001-02 to 2002-03, the GVA of the industry grew by 16%, with the previous annual period (2000-01 to 2001-02) also recording strong growth (12%). This growth followed a fall of 14% between 1999-2000 and 2000-01, coinciding with the introduction of The New Tax System in July 2000. On average, GVA of the Construction industry grew by 5.1% each year in the period 1994-95 to 2004-05.