Australian Bureau of Statistics
Celebrating the International Year of Statistics 2013

• Summary
• Downloads
• Explanatory Notes
• Related Information
• Past & Future Releases

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 15.1 provides details of industry GVA and GDP for 2005-06. 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 (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 2001-02 to 2005-06.

In 2005-06, the value of Australian production (GDP) was $922 billion (b) (in volume terms), an increase of 2.8% from 2004-05. In 2005-06, the ratio of GDP to the estimated resident population (GDP per person) was $44,526.

15.1 INDUSTRY GROSS VALUE ADDED AND GROSS DOMESTIC PRODUCT, Chain volume measures(a)(b)
	2001-02	2002-03	2003-04	2004-05	2005-06
ANZSIC Division	$m	$m	$m	$m	$m
Agriculture, forestry and fishing	27 194	20 807	27 340	27 153	28 151
Mining	45 734	45 596	43 948	46 152	45 000
Manufacturing	93 133	96 528	97 422	96 366	96 012
Electricity, gas and water supply	19 690	19 867	20 000	20 147	20 549
Construction	43 777	50 973	54 353	56 940	61 644
Wholesale trade	38 433	40 260	42 174	43 625	44 886
Retail trade	45 921	48 048	50 525	52 720	53 242
Accommodation, cafes and restaurants	17 158	17 735	18 732	19 608	20 204
Transport and storage	34 947	37 385	39 028	40 966	42 037
Communication services	20 230	21 915	23 022	23 588	25 331
Finance and insurance	57 144	58 349	61 101	62 299	65 883
Property and business services(c)	96 518	99 835	103 409	104 773	108 434
Government administration and defence	33 087	32 691	33 217	34 394	35 195
Education	36 315	36 898	37 382	37 891	38 556
Health and community services	47 008	49 036	50 745	53 197	55 455
Cultural and recreational services	11 309	11 733	12 409	13 132	13 506
Personal and other services	15 973	16 307	16 525	16 743	17 686
Ownership of dwellings	62 978	65 473	68 002	70 927	73 673
Gross value added at basic prices	746 005	767 906	799 510	820 621	845 446
Gross domestic product	813 542	839 187	873 197	896 568	921 747
(a) Reference year is 2004-05.
(b) Measures for years other than 2004-05 and 2005-06 are not additive.
(c) Excludes ownership of dwellings.
Source: Australian System of National Accounts (5204.0).

Graph 15.2 shows the average annual rate of growth in GVA (in volume terms) for individual industries between 1995-96 and 2005-06. The Communication services industry had the highest average annual rate of growth (6.3%), followed by the Construction (5.9%) and Property and business services industries (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 1995-96 to 1998-99. After this period, the year-on-year increases were much lower. In 2005-06, GVA of the Communication services industry rose by 7.4%.

The year-on-year changes for the Agriculture, forestry and fishing industry also varied significantly over time. While the value of production (GVA) of this industry grew by 3.2% on average each year between 1995-96 and 2005-06, it fell by 24% in 2002-03, due largely to the effects of drought on agricultural production. This was followed by strong growth in 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 2002-03, the GVA of the industry grew by 16%, with the previous financial year (2001-02) also recording strong growth (12%). This growth followed a fall of 14% in 2000-01, coinciding with the introduction of The New Tax System in July 2000. In 2005-06, GVA of the Construction industry rose by 8.3%.

15.2 Average annual rate of growth in the production of goods and services(a)(b) - 1995-96 to 2005-06

15.3 Contribution to gross domestic product(a)