Australian Bureau of Statistics

Rate the ABS website
ABS Home > Statistics > By Release Date
ABS @ Facebook ABS @ Twitter ABS RSS ABS Email notification service
1301.0 - Year Book Australia, 2006  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 20/01/2006   
   Page tools: Print Print Page RSS Feed RSS Bookmark and Share Search this Product  
Contents >> Chapter 13 - Industry structure and performance >> Value of goods and services produced by industries

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.

Graph 13.2: CONTRIBUTION TO GROSS DOMESTIC PRODUCT(a), Current prices - 2003-04


Graph 13.3 shows the average annual rate of growth in GVA (in chain volume terms) for individual industries between 1993-94 and 2003-04. The communication services industry had the highest average annual rate of growth (7.1%), followed by property and business services (5.6%) and construction 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 1993-94 and 2003-04. 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 1993-94 to 1998-99. After this period, the year-on-year increases were much lower. In the twelve months following 2002-03 production of the communication services industry rose by 3%.

The year-on-year changes for the agriculture, forestry and fishing industry varied significantly over time. While the value of production (GVA) of this industry grew by only 2.7% on average each year between 1993-94 and 2003-04, its GVA fell by 17% between 1993-94 and 1994-95 and by 24% in the period 2001-02 to 2002-03, due largely to the effects of drought on agricultural production. Over the 10-year period, 1993-94 to 2003-04, the largest year-on-year growth followed the recent drought with a 27% increase between 2002-03 and 2003-04.

Another industry that had been subjected to quite significant variation in year-on-year changes especially in recent years, is the construction industry. In the period 2001-02 to 2002-03 the value of production (GVA) of the construction industry grew by 16%, with the previous annual period (2000-01 to 2001-02) also recording strong growth (12%). This growth followed a fall of 14% between 1999-2000 and 2000-01, coinciding with the introduction of The New Tax System in July 2000. On average, GVA of this industry grew by 5.2% each year in the period 1993-94 to 2003-04.

Graph 13.3: AVERAGE ANNUAL RATE OF GROWTH IN THE PRODUCTION OF GOODS AND SERVICES(a), Chain volume measures(b) - 1993-94 to 2003-04


Previous PageNext Page

Bookmark and Share. Opens in a new window


Commonwealth of Australia 2014

Unless otherwise noted, content on this website is licensed under a Creative Commons Attribution 2.5 Australia Licence together with any terms, conditions and exclusions as set out in the website Copyright notice. For permission to do anything beyond the scope of this licence and copyright terms contact us.