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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).
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.
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.