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. The volume measure of GSP in 2004-05 increased in all states. Tasmania and Queensland experienced the strongest growth (up 4.0%) followed by the Northern Territory (up 3.6%) (table 29.15). New South Wales showed the weakest growth rate in 2004-05 of 1.1% and was the only state to have a growth rate below the Australian GDP growth rate of 2.3%.
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. Most states showed growth rates in GSP per person that were stronger than the Australian growth rate of 1.2%. Tasmania (up 3.2%), the Australian Capital Territory (up 2.7%) and the Northern Territory (up 2.5%) showed the strongest growth while New South Wales had the weakest growth in GSP per person of 0.4% (graph 29.16).
29.15 GROSS STATE PRODUCT(a)
2003-04 to 2004-05
1994-95 to 2004-05(b)
|New South Wales|
|Australian Capital Territory|
|(a) Volume measures.|
(b) Average annual compound rate.
(c) Gross Domestic Product.
|Source: Australian National Accounts: State Accounts (5220.0).|