Analysis of results
Growth in Gross State Product (GSP) volume measures
GSP increased in all states and territories, with the exception of Northern Territory in 2018-19. Tasmania (3.6%), Australian Capital Territory (3.0%) and Victoria (3.0%) all exceeded Australia’s Gross Domestic Product (GDP) growth rate of 1.9%.
Gross State Product annual growth, 2018-19
New South Wales (NSW) – services industries drive growth
NSW GSP grew 1.9% in 2018-19. Services industries continued strong contributions to growth in NSW with Professional, Scientific and Technical Services (3.9%), Finance and Insurance Services (2.4%), Construction (1.7%) and Health Care and Social Assistance (5.8%) recording growth in gross value added (GVA). These industries make up approximately a third of the NSW economy. Growth in Professional, Scientific and Technical Services GVA reflected ongoing demand from public spending on infrastructure projects as well as consultancies. Health Care and Social Assistance continued to grow, driven by ongoing government expenditure on disability services.
The rise in NSW GSP was moderated by the impact of drought on Agriculture as well as downstream industries such as Transport, Warehousing and Postal Services. Agriculture GVA (-14.2%) recorded the sharpest decline in sixteen years due to strong falls in grain production driven by drought conditions. The rise in meat production partly offset the decline, driven by international demand for Australian meat products and the de-stocking of herds.
New South Wales GVA by Industry vs Australia, % change
Victoria - Health Care and Social Assistance, Construction and Finance continue to drive growth
Victoria GSP grew 3.0%, faster than GDP growth of 1.9%. Health Care and Social Assistance (11.3%), Construction (4.7%) and Financial and Insurance Services (3.3%) contributed to over half of economic growth in Victoria.
Victoria’s Health Care and Social Assistance GVA exceeded national growth reflecting ongoing public spending on hospital, disability and aged-care services. State and Local General Government's continued expenditure on frontline services in both Education and Health Care also contributed to the rise.
Construction GVA expanded for its sixth consecutive year driven by investment in renewable energy and transport infrastructure projects. Building Construction contributed to growth, driven by demand for office buildings.
Financial and Insurance Services GVA continued to rise driven by growth in funds under management as well as modest growth in loan and deposit balances.
Growth in Retail Trade GVA outpaced national growth reflecting the rise in household spending on both discretionary and non-discretionary goods and services. Household Final Consumption Expenditure rose 2.6% and exceeded the national level growth of 1.9%.
Victoria GVA by Industry vs Australia, % change
Queensland - Net international trade drives growth
Queensland (QLD) GSP grew 1.4%, where net exports contributed 1.3 percentage points to growth, driven by exports of mining commodities and travel services. Mining GVA rose 3.9% reflecting increased production to meet continued international demand for Australian coal and LNG. Growth in Education GVA (2.6%) was driven by tertiary education due to ongoing demand from international students.
Growth in domestic demand was modest with the rise in both government and household consumption partly offset by a fall in private investment. The rise in public investment was strong reflecting continued infrastructure investment by the general government sector. Construction GVA fell 8.0% reflecting the decline in dwelling investment and non-dwelling construction.
Queensland GVA by Industry vs Australia, % change
South Australia - growth was broad-based with moderate rises in services industries
South Australia (SA) GSP increased 1.4%, slightly slower than GDP growth, as the services industries recorded modest growth compared to national results.
Health Care and Social Assistance GVA (8.5%) was the main contributor to growth in 2018-19, reflecting broad based strength in the industry as government spending on health services continued.
Falls in Manufacturing GVA (-5.2%) and Agriculture, Forestry and Fishing GVA (-4.4%) partly offset the rise. The decline in Agriculture, Forestry and Fishing was not as pronounced other jurisdictions as SA experienced more favourable growing conditions compared to the more drought affected eastern states.
South Australia GVA by Industry vs Australia, % change
Western Australia - Mining continues to dominate WA economy
Western Australian (WA) GSP grew 1.0%, Mining (8.0%) drove growth while Construction (-18.7%) detracted from growth.
Mining continued to dominate WA’s economy contributing over 30% of total industry GVA. Mining growth was driven by Iron Ore Mining and Oil and Gas Extraction, reflecting strong global demand for Australian commodities. Mining activity continued to expand as the industry invested in machinery and equipment driven by innovations through automation. Construction GVA detracted in 2018-19, falling 18.7%, reflecting continued declines in private new engineering construction as mining projects transition out of investment into production.
Agriculture, Forestry and Fishing GVA recorded a modest rise of 1.2% as WA experienced favourable conditions for winter crops compared to the eastern states. Transport, Postal and Warehousing GVA rose 3.8% as the successful winter harvest in WA met interstate and international demands.
WA GSP rose 10.6% in nominal terms, driven by rises in LNG and Iron ore prices coupled with increased production and exports. Iron Ore Mining was the main contributor to this growth.
Western Australia GVA by Industry vs Australia, % change
Tasmania - records strongest growth of all states and territories
Tasmania GSP grew 3.6% recording its strongest growth since 2003-04.
Health Care and Social Assistance remains the largest industry in Tasmania accounting for 13% of total industry GVA. Health Care and Social Assistance GVA grew 7.4% reflecting the broad based strength in this industry through national and state expenditure on hospital, disability and aged care related services. Employment growth in the health industry was also observed in 2018-19, aligning with increased activity.
Construction GVA (8.8%) recorded the strongest rise, reflecting ongoing pubic infrastructure investment as well as private investment in dwellings and non-dwelling construction. Non-dwelling construction was driven by investment in accommodation buildings reflecting high demand from tourism. Rises in Accommodation and Food Services GVA (5.6%) and Arts and Recreation Services GVA (6.0%) reflects growth in discretionary spending by residents as well as increased tourism activity recorded in 2018-19.
Agriculture, Forestry and Fishing recorded modest growth of 2.3% as Tasmania benefitted from more favourable growing conditions than those experienced in the rest of Australia.
Tasmania GVA by Industry vs Australia, % change
Northern Territory - Mining transitions from investment to production
Northern Territory (NT) GSP fell 1.5% and was the only state or territory to record a decline in 2018-19. Falls were recorded across 13 of 19 industries with detractions from Transport, Postal and Warehousing, Construction and Accommodation and Food Services.
Construction GVA fell 46.6% and was the largest detractor from growth while Mining GVA increased 46.3%, reflecting the transition of LNG facilities from investment into production. Increased LNG production contributed to the rise in exports. Net exports contributed 12 percentage points to growth in GSP, recording its strongest contribution to economic growth in NT since 2001.
NT GSP rose 3.8% in nominal terms, driven by rises in LNG prices coupled with increased production and exports.
Northern territory GVA by Industry vs Australia, % change
Australian Capital Territory - records growth in 18 out of 19 industries
Australian Capital Territory (ACT) GSP grew 3.0% with expansion recorded in 18 out of 19 industries.
Services industries supporting the Australian Public Service through computer services and business consulting continued to drive growth in the ACT. Administrative and Support Services GVA (9.7%) and Professional, Scientific and Technical Services GVA (4.1%) both recorded rises.
Health Care and Social Assistance GVA rose 7.4%, reflecting expansionary health service programs across the ACT.
Public Administration and Safety, Health Care and Social Assistance, and Professional, Scientific and Technical Services are the largest industries in the ACT. Collectively, these industries accounted for more than 50% of total industry GVA.
Construction activity in the ACT remained strong reflecting continued growth in dwelling investment. Rental, Hiring and Real Estate GVA continued to rise reflecting strength in the housing market.
Australian Capital Territory GVA by Industry vs Australia, % change
All states and territories record higher Real Gross State Income (RGSI) in 2018-19
While GSP measures domestic production, the real purchasing power of income generated from that production is affected by changes in the prices of international and interstate imports and exports. RGSI adjusts GSP for changes in a state's terms of trade.
RGSI rose in all states and territories reflecting the increasing terms of trade at the national level in 2018-19. The highest increase was recorded in WA (8.9%) reflecting strong growth in LNG and iron ore prices. Rises in LNG and iron ore prices have a larger impact on WA due to its dominance in iron ore production and exports compared to other states and territories.
Despite the fall in NT's GSP, NT recorded a rise in RGSI (2.0%) and the second largest rise in RGSI per capita (2.4%) following WA. The rise in RGSI per capita reflects a strong rise in RGSI driven by LNG facilities transitioning from investment to production coupled with a rise in LNG prices in an environment of declining population in 2018-19.
Real Gross State Income and Real Gross State Income per capita, % change