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.
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.
Graph 13.3 shows industry GVA shares of GDP (in current prices) in 1994-95 and 2004-05. The Property and business services industry contributed the largest share to GDP (11.6% or $103b) in 2004-05. This was followed by the Manufacturing industry (11.3% of GDP or $101b). The Finance and insurance industry was the third most important industry in terms of contribution to GDP, contributing 6.9% or $61b.
Between 1994-95 and 2004-05, the largest increase in industry GVA share of GDP was for the Property and business services industry (up 1.7 percentage points). The next largest increases were for the Finance and insurance (1.4 percentage points), and Construction (0.6 percentage points) industries.
In the same period, the largest fall in industry shares of GDP was for Manufacturing (down 2.5 percentage points). The next largest falls were for Transport and storage (0.6 percentage points), Electricity, gas and water supply (0.5 percentage points), and Wholesale trade and Education (both of which had a decrease of 0.3 percentage points).
13.1 INDUSTRY GROSS VALUE ADDED(a)(b) AND GROSS DOMESTIC PRODUCT(b)
|Agriculture, forestry and fishing|
|Electricity, gas and water supply|
|Accommodation, cafes and restaurants|
|Transport and storage|
|Finance and insurance|
|Property and business services(d)|
|Government administration and defence|
|Health and community services|
|Cultural and recreational services|
|Personal and other services|
|Ownership of dwellings|
|Gross value added at basic prices(e)|
|Gross domestic product|
|(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).|