IMPACT OF CHANGE ON PRODUCTIVITY AGGREGATES
The conceptual change results in a level shift to the key aggregate 'Gross value added per hour worked market sector' (table 1). For recent years, this aggregate will be approximately 10 per cent lower than 'GDP per hour worked market sector', due to excluding 'taxes less subsidies on products' from the aggregate.
In real terms, the proportion of 'taxes less subsidies on products' to GDP has trended lower over time. The charts below demonstrate the impact on the most recently released productivity measures, in respect of 2009-10 release of the Australian System of National Accounts. Real gross value added for the market sector grows slightly faster than GDP for the Market sector: average real output growth increases by 0.1 percentage points per annum (from 3.6% to 3.7% per annum). Average MFP growth increases by about 0.1 percentage point per annum (from 0.6 to 0.7 per cent). The timing of productivity growth cycles is unaffected.
The revisions to productivity aggregate measures in the 2010-11 issue of the ASNA will reflect both the conceptual change to gross value added based output measures and the full historical revision cycle described in part 1 of this article.
Chain volume measures
For further information about productivity measures contact Derek Burnell on Canberra (02) 6252 6427.