GROSS DOMESTIC PRODUCT

In the 10 years to 2007-08, GDP per person grew from $41,000 to $51,000 in real (chain volume) terms, an annual average increase of 2.2%. In the context of the global economic downturn, GDP fell by 0.1% on a trend basis during the last quarter of 2008 (Endnote 2).

ABOUT THIS INDICATOR

Gross domestic product (GDP) is the total market value of goods and services produced in Australia within a given period after deducting the cost of goods and services used up in the process of production, but before deducting allowances for the consumption of fixed capital. Unlike the headline measure, Real net national income, GDP does not take account of income flows between Australia and the rest of the world, or of changes in the terms of trade. In addition, national income but not GDP is adjusted for the depreciation of fixed capital used in the production process.

While GDP is not a headline indicator in MAP, it is a key measure for assessing the health of a nation's economy and for comparing economic growth across countries. It is frequently, widely and consistently measured. GDP, however, is not a comprehensive measure of progress and therefore MAP provides a suite of headline and other indicators to examine progress across society and the environment as well as the economy.

SEE ALSO

National income, Measures of Australia's Progress, 2006
Themes - National Accounts

ENDNOTES

1. GDP per capita is based on a volume measure with a reference year of 2006-07.
2. Australian Bureau of Statistics, 2009, Australian National Accounts: National Income, Expenditure and Product, Dec 2008 (cat no. 5206.0).

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