Australian Bureau of Statistics
Celebrating the International Year of Statistics 2013

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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. 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 is provided in the National accounts chapter.

Table 13.1 provides details of industry GVA and GDP for 2003-04. 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) in 2003-04, along with percentage changes from 2002-03 and average annual rates of growth between 1993-94 and 2003-04.

In 2003-04 the value of Australian production (GDP) was $787 billion (b) (in chain volume terms), an increase of 3.8% from 2002-03. The average annual rate of growth in GDP between 1993-94 and 2003-04 was 3.9%. In 2003-04 the ratio of GDP to the estimated resident population (GDP per person) was $39,120.

13.1 INDUSTRY GROSS VALUE ADDED(a) AND GROSS DOMESTIC PRODUCT, Chain volume measures(b)
	1993-94	2002-03	2003-04	Change from 2002-03 to 2003-04	Average annual rate of growth from 1993-94 to 2003-04
	$m	$m	$m	%	%
Agriculture, forestry and fishing	20,540	21,164	26,800	26.6	2.7
Mining	25,378	34,272	33,139	-3.3	2.7
Manufacturing	67,141	82,462	83,622	1.4	2.2
Electricity, gas and water supply	14,941	16,961	17,202	1.4	1.4
Construction	29,344	45,668	48,556	6.3	5.2
Wholesale trade	25,533	39,282	42,164	7.3	5.1
Retail trade	27,016	39,403	42,321	7.4	4.6
Accommodation, cafes and restaurants	10,897	15,456	16,468	6.5	4.2
Transport and storage	25,039	37,389	39,164	4.7	4.6
Communication services	10,572	20,351	20,986	3.1	7.1
Finance and insurance	37,906	57,963	60,445	4.3	4.8
Property and business services(c)	47,595	79,390	82,149	3.5	5.6
Government administration and defence	23,417	29,634	30,125	1.7	2.6
Education	28,293	33,144	33,547	1.2	1.7
Health and community services	30,637	43,957	45,398	3.3	4.0
Cultural and recreational services	10,067	13,160	13,585	3.2	3.0
Personal and other services	12,345	17,494	17,716	1.3	3.7
Ownership of dwellings	44,997	63,860	66,306	3.8	4.0
Taxes less subsidies on products	45,697	67,137	69,200	3.1	4.2
Statistical discrepancy	606	-	-2,138	. .	. .
Gross domestic product	(d)538,269	758,147	786,754	3.8	3.9
(a) At basic prices. (b) Reference year is 2002-03. (c) Excludes ownership of dwellings. (d) Chain volume measures for 1993-94 are not additive. Source: Australian System of National Accounts, 2003-04 (5204.0).

Graph 13.2 shows industry GVA shares of GDP (in current prices) in 2003-04. The manufacturing industry contributed the largest share to GDP (10.9% or $88b) in 2003-04. This was followed by the property and business services industry (10.5% of GDP or $86b). The finance and insurance industry was the third most important industry in terms of contribution to GDP, contributing 7.6% or $62b.

Between 1993-94 and 2003-04, the greatest relative increase in industry GVA share of GDP was for the property and business services industry (up 1.8 percentage points). The next largest increases were for the finance and insurance (1.3 percentage points), and construction (0.8 percentage points) industries.

In the same period, the greatest fall in relative shares of GDP was for the manufacturing industry (down 2.0 percentage points). The next largest decreases in relative shares were for the electricity, gas and water supply industry (0.8 percentage points) followed by agriculture, forestry and fishing (0.4 percentage points) and mining, wholesale trade, and education industries, all of which had a decrease in relative share of GDP of 0.3 percentage points.