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 gross domestic product (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 the allowances for the consumption of fixed capital (depreciation). This measure avoids double counting the goods and services produced at successive stages of production. As a result, this is also described as the unduplicated value of economic 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 of taxes and subsidies across 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 chapter 30 NATIONAL ACCOUNTS.

Table 15.1 provides volume measures of industry GVA and GDP for 2010–11. Data are presented at a broad industry level according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (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 2006–07 to 2010–11. Note that the sum of industries' GVA does not add up to GDP as the former do not include taxes less subsides on products (taxes less subsidies on products relate to products sold rather than industries producing them and therefore cannot be reliably allocated to industries).

In 2010–11, the value of Australian production (GDP) was $1,320 billion (in volume terms), an increase of 2.1% from 2009–10. In 2010–11, the ratio of GDP to the estimated resident population (GDP per capita) was $58,114.

15.1 INDUSTRY GROSS VALUE ADDED AND GROSS DOMESTIC PRODUCT, Volume measures(a)
	2006–07	2007–08	2008–09	2009–10	2010–11
ANZSIC Division(b)	$m	$m	$m	$m	$m
Agriculture, forestry and fishing	23 139	24 743	29 109	28 764	31 383
Mining	86 446	88 193	90 507	96 105	95 512
Manufacturing	108 703	113 062	106 363	107 707	107 845
Electricity, gas, water and waste services	26 798	26 866	27 894	28 623	28 922
Construction	86 469	92 516	95 292	95 804	101 868
Wholesale trade	51 168	52 692	53 379	55 128	54 794
Retail trade	54 551	57 154	57 179	58 258	59 092
Accommodation and food services	31 381	31 288	30 152	29 474	29 941
Transport, postal and warehousing	61 288	64 635	63 885	65 392	67 720
Information media and telecommunications	38 472	40 867	41 336	41 823	42 367
Financial and insurance services	115 172	124 241	123 627	125 399	127 984
Rental, hiring and real estate services(c)	26 488	25 613	26 782	27 260	26 736
Professional, scientific and technical services	69 488	71 666	74 736	81 043	86 604
Administrative and support services	31 059	32 758	30 714	30 246	32 254
Public administration and safety	60 302	60 621	64 090	64 117	65 266
Education and training	52 890	53 996	55 596	57 546	58 821
Health care and social assistance	62 097	65 193	68 807	72 627	74 307
Arts and recreation services	9 906	10 135	10 907	10 911	11 172
Other services	22 955	23 384	23 808	23 548	22 671
Ownership of dwellings	94 980	97 449	100 330	103 271	105 895
Gross domestic product(d)	1 201 563	1 246 899	1 263 934	1 293 380	1 320 057
(a) Reference year is 2009–10. (b) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (1292.0).
(c) Excludes ownership of dwellings.
(d) Sum of industry gross value added does not equal gross domestic product.
Source: Australian System of National Accounts, 2010–11 (5204.0).

Graph 15.2 shows the average annual simple rate of growth in GVA (in volume terms) for individual industries between 2000–01 and 2010–11. The Financial and insurance services and the Construction industry had the highest average annual rate of growth (just over 5%), followed by the Professional, scientific and technical services industry (4.8%) and the Health care and social assistance industry (4.6%).

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, some fast growing industries in this period showed fluctuating trends of GVA throughout the decade. While the Financial and insurance services industry GVA grew 12% between 2005–06 and 2006–07, it fell 0.5% two years later. Similarly, the Construction industry experienced a 16% GVA growth between 2001–02 and 2002–03, and almost no growth between 2008–09 and 2009–10. In 2010–11, the GVA of the Construction industry rose 6.3% and the GVA of the Financial and insurance services industry rose 2.1%. The Professional, scientific and technical services industry has also shown fluctuating growth during the period, ranging from 11% at the beginning of the decade to 1.4% at mid-decade. In 2010–11, the GVA of this industry rose 6.9%.

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 3.2% on average each year between 2000–01 and 2010–11, it fell 24% in 2002–03 and 15% in 2006–07, due largely to the effects of drought on agricultural production. In both cases, this decline was followed by strong growth in 2003–04 and 2008–09 after the drought period. Between 2009–10 and 2010–11, the Agriculture, forestry and fishing industry grew 9.1%.




Graph 15.3 shows industry GVA shares of GDP for 2000–01 and 2010–11. The Financial and insurance services industry contributed the largest share to GDP (9.7%) in 2010–11, followed by Manufacturing (8.2%), Construction (7.8%) and Mining (7.3%).

Between 2000–01 and 2010–11, the largest increase in industry GVA share of GDP was for Construction (up 2.8 percentage points) and Financial and insurance services (up 2.6 percentage points). The largest fall in industry share of GDP in the period was Manufacturing (down 1.5 percentage points).

 

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