ANALYSIS OF RESULTS


GROWTH IN GSP VOLUME MEASURES

The volume measure of Gross state product (GSP) increased in all states in 2010-11. Western Australia (WA) experienced the strongest growth (3.5%), and was one of five states to exceed the national Gross domestic product (GDP) growth rate of 2.1%. The others were New South Wales (NSW), Victoria (VIC), South Australia (SA) and the Australian Capital Territory (ACT). Queensland (QLD) experienced the lowest growth rate of 0.2% for 2010-11.

GSP, Chain Volume measures
		Annual growth	Average annual compound growth rate (1999-00 to 2010-11)
2010-11
	New South Wales	2.2	2.0
	Victoria	2.5	3.1
	Queensland	0.2	4.2
	South Australia	2.4	2.7
	Western Australia	3.5	4.6
	Tasmania	0.8	2.5
	Northern Territory	1.6	3.6
	Australian Capital Territory	2.8	3.0
	Australia(a)	2.1	3.1
(a) Gross domestic product.

GSP PER CAPITA

For analytical purposes it is important to allow for the impact of population growth on movements in GSP. NSW, VIC, SA, WA, Northern Territory (NT) and ACT had positive growth in GSP per capita due to GSP growth rates exceeding their state population growth rates.

QLD was the only state to record a decline in GSP per capitia. Tasmania (TAS) was flat for 2010-11.

REAL GROSS STATE INCOME

Volume estimates of GSP measure the volume of goods and services produced in each state. If the terms of trade for a state change significantly (i.e. the prices for international exports and imports change at different rates) then GSP will not accurately reflect the change in real purchasing power of the income generated within a state. For this reason, Real gross state income (RGSI) includes an adjustment to capture the terms of trade (for details on the calculation method see the Explanatory Notes, paragraphs 26 - 28).

The following graph shows annual percentage changes in RGSI per capita in 2010-11. WA was the stand out state, with RGSI per capita of 17.6%.

GROSS VALUE ADDED (GVA)

Volume growth in GVA was positive in all states in 2010-11. The strongest growth was in WA (3.9%), ACT (2.8%) and SA & VIC (2.6%). Conversely, QLD and TAS recorded the weakest growth with 0.4%.

Growth in WA was driven by Mining (5.7%), Construction (4.4%) and Professional, scientific and technical services (12.0%). Offsetting these industries was Agriculture, forestry and fishing (-32.2%).

QLD experienced growth in Construction (12.0%) and Administrative and support services (8.3%). However, these industries were offset by Mining (-17.7%) and Other services (-8.4%) with mining being driven by adverse weather conditions.

INDUSTRY GVA CONTRIBUTION TO GROSS STATE PRODUCT GROWTH
		NSW	Vic.	Qld	SA	WA	Tas.	NT	ACT	Aust.(a)
		% pts	% pts	% pts	% pts	% pts	% pts	% pts	% pts	% pts
2010-11
	Agriculture, forestry and fishing	0.5	0.1	0.3	0.8	-0.6	0.1	0.5	-	0.2
	Mining	-	-	-1.6	0.7	1.6	-	-0.1	-	-
	Manufacturing	0.3	-0.2	-0.2	0.2	0.2	-0.9	1.0	-0.2	-
	Electricity, gas, water and waste services	-	0.1	-	-0.1	0.2	0.1	-	0.1	-
	Construction	0.3	0.3	1.0	0.4	0.5	0.3	-0.4	0.6	0.5
	Wholesale trade	0.1	-0.2	-	-0.2	-0.1	-	-	-	-
	Retail trade	-	0.2	0.1	-0.1	0.1	-0.2	-0.1	0.1	0.1
	Accommodation and food services	0.1	0.1	-0.1	-	-	-0.1	-	0.1	-
	Transport, postal and warehousing	0.3	0.1	0.2	0.2	0.1	0.1	-	0.1	0.2
	Information media and telecommunications	-	-	0.1	-0.1	0.2	-	-	-0.1	-
	Financial and insurance services	0.1	0.4	0.2	0.2	0.1	0.3	0.1	0.1	0.2
	Rental, hiring and real estate services	-0.1	-	-	-0.1	0.1	-	-0.2	-0.1	-
	Professional, scientific and technical services	0.3	1.0	-0.2	0.3	0.7	-	-	0.5	0.4
	Administrative and support services	0.1	0.1	0.1	-	0.4	0.3	0.2	0.2	0.2
	Public administration and safety	-	0.1	0.1	0.1	-	0.1	0.6	0.8	0.1
	Education and training	0.1	0.1	0.1	0.1	0.1	0.2	-	0.2	0.1
	Health care and social assistance	0.1	0.2	0.1	0.1	0.1	0.1	0.2	0.2	0.1
	Arts and recreation services	-	0.1	-	-	-	-	-0.1	-	-
	Other services	-0.1	-	-0.2	-0.1	-	0.1	-	0.2	-0.1
	Ownership of dwellings	0.2	0.2	0.2	0.2	0.2	0.1	0.1	0.2	0.2
	Taxes less subsidies on products	0.1	0.1	0.1	-	0.1	-	0.1	-	0.1
	Statistical discrepancy	-0.2	-0.1	-0.2	-0.2	-0.4	0.4	-0.3	-	-0.2
	Gross state product	2.2	2.5	0.2	2.4	3.5	0.8	1.6	2.8	2.1
- nil or rounded to zero (including null cells)
(a) Gross domestic product.

At a national level, the main industries contributing to the 2010-11 GVA growth of 2.3% were Construction (6.9%), Professional, scientific and technical services (6.9%) and Agriculture, forestry and fishing (9.1%). Other services (-3.7%) and Rental, hiring and real estate services (-1.9%) were the main detractors to growth.

From a state perspective, there are differing industry impacts in GVA growth. In 2010-11, the largest contributor(s) to results in each state was/were:

• NSW - Agriculture, forestry and fishing;
• VIC - Professional, scientific and technical services;
• QLD - Construction & Mining (detractor to growth);
• SA - Agriculture, forestry and fishing;
• WA - Mining;
• TAS - Construction & Manufacturing (detractor to growth);
• NT - Public administration and safety;
• ACT - Public administration and safety.

STATE FINAL DEMAND (SFD)

Volume growth in SFD in 2010-11 was positive for seven of the eight states. The strongest growth was in WA (6.5%), followed by ACT (3.8%) and NSW & VIC (3.3%). Growth in all these states was driven by strong Public gross fixed capital formation.

NT was the only state to have a decline in SFD (-0.8%). This was a result of a 20.0% decline in Private gross fixed capital formation with the completion of a number of major construction projects in 2009-10.

WA and ACT were the only states to record SFD above the national Domestic final demand (DFD) of 3.4%.

NSW contributed the most to Australia's DFD growth with 1.0 percentage point while VIC and WA each contributed 0.8 percentage points.

STATE FINAL DEMAND, Chain volume measures
			2010-11
	2009-10	2010-11	SFD Growth	Contribution to DFD
			%	% pts
New South Wales	397 258	410 365	3.3	1.0
Victoria	309 034	319 285	3.3	0.8
Queensland	257 349	264 950	3.0	0.6
South Australia	87 971	89 219	1.4	0.1
Western Australia	160 325	170 743	6.5	0.8
Tasmania	26 288	26 953	2.5	0.1
Northern Territory	18 906	18 753	-0.8	-
Australian Capital Territory	44 781	46 493	3.8	0.1
Australia(a)	1 301 913	1 346 763	3.4	3.4
- nil or rounded to zero (including null cells)
(a) Domestic final demand.

GOVERNMENT FINAL CONSUMPTION EXPENDITURE (GFCE)

GFCE in volume terms rose in all states in 2010-11. NT showed the strongest growth in volume terms with an increase of 4.9%. The lowest growth was recorded in ACT (1.0%), followed by SA (1.3%). The major contributors to Australia's growth in GFCE of 2.5% were NSW (0.8 percentage points) and QLD (0.6 percentage points).


HOUSEHOLD FINAL CONSUMPTION EXPENDITURE (HFCE)

HFCE volume growth was strongest in WA (4.5%), VIC (4.2%) and NSW(3.2%). Weakest growth was experienced in TAS (1.1%). The major contributor to Australia's HFCE growth of 3.4% was NSW (1.1 percentage points).


PRIVATE GROSS FIXED CAPITAL FORMATION

In 2010-11, WA had the strongest growth in Private gross fixed capital formation (9.6%) due to strength in Non-dwelling construction (15.6%) and Machinery and equipment (11.5%). ACT and QLD also showed strong growth with 9.3% and 6.1% respectively. NT was the only state to decline with a reduction in Private gross fixed capital formation of 20.0%. This was driven by Non-dwelling construction (-22.3%) and Machinery and equipment (-31.8%)

The major contributor to Australia's increase in Private gross fixed capital formation of 4.1% was WA with 2.0 percentage points.


PUBLIC GROSS FIXED CAPITAL FORMATION

QLD and SA were the only two states to record declines in Public gross fixed capital formation with -7.7% and -3.8% respectively. ACT (21.7%), NT (15.2%), TAS (13.7%), WA (12.3%) and VIC (10.7%) recorded strong growth.

The major contributor to Australia's growth in Public gross fixed capital formation of 3.8% was VIC with 2.0 percentage points.


TOTAL FACTOR INCOME (TFI)

Factor incomes grew in all states. WA (20.5%), SA (6.9%) and NSW (6.6%) were the strongest states while TAS (4.5%) was the weakest.

Australia's Compensation of employees (COE) rose by 7.7% with WA recording the strongest growth of 15.7%. TAS (1.5%) and NT (2.6%) were the slowest growth states.

There was also growth in gross operating surplus (GOS) plus gross mixed income (GMI), which grew 8.9% for Australia. All states experienced growth in GOS plus GMI. The growth was strongest in WA (23.9%), NT (10.2%) and SA (8.5%).


GROSS HOUSEHOLD DISPOSABLE INCOME PER CAPITA

The above analysis of GSP per capita concentrates on the level of economic production and its growth. It does not provide a measure of incomes received by residents of a particular state, because a proportion of income generated in the production process may be transferred to other states or overseas (and conversely income may be received from other states or overseas). A measure that takes these flows into account is gross household disposable income per capita.

Gross household disposable income per capita in 2010-11 was highest in ACT and lowest in TAS. Please refer to Table 43 for more details. Differences between the states reflect differences in the impact of a range of factors including the average level of compensation of employees received per employee, the proportion of the population in employment, the age distribution of the population and differences in the level of dwelling rent (including that imputed to owner occupiers). For example, a significant reason for the high level of gross household disposable income per capita in the ACT compared with other states is that the labour force participation rate is much higher there than in the rest of Australia.

WA showed the strongest growth in gross household income per capita (10.0%). While this is of similar magnitude to Real gross state income (RGSI) (17.6%), non wage earnings from the mining sector only partially flow to residents of the state (mostly through dividends and superannuation), with mining ownership dispersed nationally and internationally.