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Feature Article - Real net national disposable income - a new national accounts measure
Each of these factors has an impact on the real standard of living of Australians.
COMPARISON TO GDP
The table below provides estimates of RNNDI, in both seasonally adjusted and trend terms, for the past ten quarters. In the December quarter 2001, seasonally adjusted RNNDI was $134,560 million, compared with the seasonally adjusted chain volume measure of GDP of $165,882 million. (Both of these estimates are in 1999-2000 dollars.) Seasonally adjusted RNNDI grew by 0.9%, compared to growth in the seasonally adjusted chain volume measure of GDP of 1.3%.
The graph below provides a long-term comparison of trend quarterly movements in RNNDI and the chain volume measure of GDP. For the most part, the two measures show very similar movements. However, there are noticeable differences in growth rates for some periods. These differences are mainly due to the terms of trade effect. Because income flows between Australia and the rest of the world are relatively small and are fairly smooth over time, changes in them tend to have little impact on short-term movements in RNNDI. Except in periods of slow economic growth, movements in consumption of fixed capital tend to be similar to movements in the chain volume measure of GDP, so for the most part the deduction of consumption of fixed capital has relatively little affect on short term movements in RNNDI compared with the chain volume measure of GDP. Over the long term, consumption of fixed capital grows at a stronger rate than GDP in volume terms hence the deduction of consumption of fixed capital means that RNNDI tends to grow at a weaker rate than GDP.
Real net national disposable income is derived as follows:
All of these adjustments to the volume estimates of GDP are made using the chain volume aggregation method used to derive all of the ABS chain volume estimates.
Further information on the measures of real income for the total economy can be found in Chapter 16 of the 1993 issue of System of National Accounts. In addition, background information to the calculation of RGDI is provided in the Explanatory Notes paragraph 32 and in a Technical Note included in the September quarter 1993 issue of this publication.
Starting in the March quarter 2002 issue of this publication RNNDI estimates will be shown in the 'Analysis and Comments Section'. From the June quarter 2002 issue time series will be provided in the main publication tables. As well, RNNDI per capita will be one of the 'headline' indicators shown in Measuring Australia's Progress (Cat. no. 1370.0), which is planned for release on 4 April 2000. For further information on RNNDI please contact Carl Obst on 02 6252 6713 or by email email@example.com.
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