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1301.0 - Year Book Australia, 2005  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 21/01/2005   
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Contents >> Industry structure and performance >> Value of goods and services produced by industries

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. More information is provided in Chapter 29 National accounts.

Table 13.1 provides details of industry GVA and GDP for 2002-03. Data are presented at a broad industry level, generally equating to the Division level of the Australian and New Zealand Standard Industrial Classification (ANZSIC). 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) in 2002-03, along with percentage changes from 2001-02 and average annual rates of growth between 1992-93 and 2002-03.

In 2002-03 the value of Australian production (GDP) was $734,209m (in chain volume terms), an increase of 2.8% from 2001-02. The average annual rate of growth in GDP between 1992-93 and 2002-03 was 3.8%. In 2002-03 the ratio of GDP to the estimated resident population (GDP per person) was $36,930.


13.1 INDUSTRY GROSS VALUE ADDED(a) AND GROSS DOMESTIC PRODUCT, Chain volume measures(b)

1992-93
2001-02
2002-03
Change from 2001-02 to 2002-03
Average annual rate of growth from 1992-93 to 2002-03
$m
$m
$m
%
%

Agriculture, forestry and fishing
19,700
27,663
20,206
-27.0
0.3
Mining
24,398
33,822
33,944
0.4
3.4
Manufacturing
61,589
76,686
78,958
0.3
2.5
Electricity, gas and water supply
13,778
15,977
16,145
1.1
1.6
Construction
27,737
39,540
45,977
16.3
5.2
Wholesale trade
22,823
36,089
37,919
5.1
5.2
Retail trade
25,028
36,034
37,689
4.6
4.2
Accommodation, cafes and restaurants
10,079
14,630
15,206
3.9
4.2
Transport and storage
23,161
34,718
36,382
4.8
4.6
Communication services
9,689
19,163
20,378
6.3
7.7
Finance and insurance
34,256
50,792
53,073
4.5
4.5
Property and business services(c)
45,624
75,524
75,091
-0.6
5.1
Government administration and defence
21,553
27,755
28,353
2.2
2.8
Education
26,766
31,201
31,619
1.3
1.7
Health and community services
28,684
41,236
42,725
3.6
4.1
Cultural and recreational services
9,407
12,470
12,327
-1.1
2.7
Personal and other services
11,422
16,011
16,081
0.4
3.5
Ownership of dwellings
44,972
63,326
65,836
4.0
3.9
Taxes less subsidies on products
42,319
61,733
63,723
3.2
4.2
Statistical discrepancy
832
0
2,577
. .
. .
GDP
(d)504,145
714,370
734,209
2.8
3.8

(a) At basic prices.
(b) Reference year is 2001-02.
(c) Excludes ownership of dwellings.
(d) Chain volume measures for 1992-93 are not additive.

Source: Australian System of National Accounts, 2002-03 (5204.0).


Graph 13.2 shows industry GVA shares of GDP in 2002-03. The manufacturing industry contributed the largest share to GDP (10.8% or $78,958m) in 2002-03. This was followed by the property and business services industry (10.2% of GDP or $75,091m). The finance and insurance industry was the third most important industry in terms of contribution to GDP, contributing 7.2% or $53,073m.

Between 1992-93 and 2002-03, the greatest relative increase in industry GVA share of GDP was for the property and business services industry (1.2 percentage points). The next biggest increases were for the communication services (0.9 percentage points) and construction (0.8 percentage points) industries.

In the same ten-year period, the greatest fall in relative shares of GDP was for the manufacturing industry (-1.5 percentage points). The next largest decreases in relative shares were for the agriculture, forestry and fishing (-1.2 percentage points), education (-1.0 percentage points), and electricity, gas and water supply (-0.5 percentage points) industries.

Graph 13.2: CONTRIBUTION TO GROSS DOMESTIC PRODUCT(a), Chain volume measures(b) - 2002-03




Movements in the chain volume measures of GDP and industry GVA (from which the direct effects of price changes have been removed) are important indicators of economic growth. More information on chain volume measures is provided in Chapter 29 National accounts.

Graph 13.3 provides the average annual rate of growth in industry GVA (in chain volume terms) between 1992-93 and 2002-03. The communication services industry had the highest average annual rate of growth (7.7%), followed by both the construction and wholesale trade industries (5.2%). Average annual growth rates provide an indicator of the broad underlying behaviour of the annual series over several years. These averages, however, smooth annual movements in the series and mask the highest and lowest annual movements.

The average annual growth rates shown were affected by year-on-year changes in levels between 1992-93 and 2002-03. 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 1992-93 to 1998-99. In the most recent period (2001-02 to 2002-03) the communication services industry rose by 6.3%.

On average, the value of production (GVA) of the agriculture, forestry and fishing industry grew by only 0.3% each year between 1992-93 and 2002-03. However, year-on-year growth in the value of this industry varied significantly over time. The GVA of the agriculture, forestry and fishing industry fell by 17.0% between 1993-94 and 1994-95 and by 27.0% in the period, 2001-02 to 2002-03, due to the effects of drought on agricultural production. Over the ten-year period, 1992-93 to 2002-03, the largest year-on-year growth followed the 1994-95 drought with a 23.5% increase between 1994-95 and 1995-96.

The value of production (GVA) of the construction industry grew, on average, by 5.2% each year in the ten-year period 1992-93 to 2002-03. In terms of year-on-year growth, this series changed significantly in recent years. In the most recent period (2001-02 to 2002-03) the GVA of the construction industry grew by 16.3%, with the previous period (2000-01 to 2001-02) also recording strong growth (11.7%). This growth followed a fall of 15.6% between 1999-2000 and 2000-01, coinciding with the introduction of The New Tax System in July 2000.

Graph 13.3: AVERAGE ANNUAL RATE OF GROWTH IN THE PRODUCTION OF GOODS AND SERVICES(a), Chain volume measures(b) - 1992-93 to 2002-03



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