ANALYSIS OF RESULTS


GROWTH IN GSP VOLUME MEASURES

The volume measure of Gross state product (GSP) increased in all states in 2011-12. Western Australia (WA) experienced the strongest growth (6.7%), and was one of four states to exceed the national Gross domestic product (GDP) growth rate of 3.4%. The others were Queensland (QLD) (4.0%), Northern Territory (NT) (4.4%) and the Australian Capital Territory (ACT) (3.5%). Tasmania (TAS) experienced the lowest growth rate of 0.5% for 2011-12.

GSP, Chain Volume measures
		Annual growth	Average annual compound growth rate (2000-01 to 2011-12)
2011-12
	New South Wales	2.4	2.2
	Victoria	2.3	2.9
	Queensland	4.0	4.0
	South Australia	2.1	2.5
	Western Australia	6.7	4.8
	Tasmania	0.5	2.1
	Northern Territory	4.4	3.6
	Australian Capital Territory	3.5	3.2
	Australia(a)	3.4	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. All states had positive growth in GSP per capita due to GSP growth rates exceeding their state population growth rates for 2011-12.

Both WA and NT recorded the highest GSP per capita growth (3.7%) while Tasmania (TAS) recorded the lowest (0.1%) for 2011-12.

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 2011-12. WA recorded the highest growth in RGSI per capita of 6.6%. TAS (-1.3%) is the only state to report negative RGSI in 2011-12.

GROSS VALUE ADDED (GVA)

Volume growth in GVA was positive in all states in 2011-12. The strongest growth was in WA (7.2%), while TAS (0.6%) recorded the weakest growth.

Growth in WA was driven by the Mining (8.4%), Construction (9.7%), Agriculture, forestry and fishing (50.5%), Wholesale trade (10.4%) and Manufacturing (5.1%) industries. Offsetting the growth in these industries was Information media and telecommunications, which fell 2.9%.

TAS experienced growth in the Mining (20.6%), Healthcare and social assistance (5.2%) and Wholesale trade (11.3%) industries. However, these increases were offset by falls in the Manufacturing (-11.4%) and Electricity, gas, water and waste services (-5.1%) industries.

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
2011-12
	Agriculture, forestry and fishing	-	-	0.3	-	0.6	-	-	-	0.1
	Mining	0.3	-	0.3	0.2	2.9	0.3	-	-	0.6
	Manufacturing	-0.2	-0.4	0.2	0.1	0.3	-1.1	0.4	-0.1	-0.1
	Electricity, gas, water and waste services	-0.1	-	-0.1	-	0.1	-0.2	-	0.2	-
	Construction	0.1	-	0.4	-0.3	1.1	0.3	2.6	0.3	0.3
	Wholesale trade	0.2	0.2	0.4	0.1	0.3	0.3	0.2	-0.1	0.3
	Retail trade	0.1	0.1	0.2	-	0.2	0.2	-	-0.1	0.1
	Accommodation and food services	-	-	0.2	0.1	0.1	0.1	0.2	0.1	0.1
	Transport, postal and warehousing	0.1	0.1	0.3	0.2	0.2	0.1	0.1	0.1	0.2
	Information media and telecommunications	-	0.1	-	-0.1	-	-0.1	-	-	-
	Financial and insurance services	0.5	0.2	0.1	0.4	-	-0.3	-	-	0.3
	Rental, hiring and real estate services	-	0.1	0.1	0.1	0.1	-	0.1	0.1	0.1
	Professional, scientific and technical services	0.3	0.4	0.2	0.2	0.2	0.1	-	0.4	0.3
	Administrative and support services	-0.1	-	-	-	-	-	-0.2	-	-0.1
	Public administration and safety	0.2	0.2	0.2	0.3	0.1	0.2	0.2	1.8	0.2
	Education and training	-	0.1	0.1	0.1	-	0.1	-	0.1	0.1
	Health care and social assistance	0.4	0.4	0.5	0.3	0.2	0.4	0.4	0.3	0.4
	Arts and recreation services	-	0.1	-	-	-	-	-	0.1	-
	Other services	-	0.1	-	-	0.1	-	0.1	0.2	0.1
	Ownership of dwellings	0.2	0.2	0.2	0.1	0.2	0.1	0.2	0.2	0.2
	Taxes less subsidies on products	-	-	0.1	-0.1	0.1	-0.2	-	-0.1	-
	Statistical discrepancy	0.3	0.5	0.4	0.4	-0.4	0.2	-0.2	0.1	0.2
	Gross state product	2.4	2.3	4.0	2.1	6.7	0.5	4.4	3.5	3.4
- nil or rounded to zero (including null cells)
(a) Gross domestic product.

At a national level, the main industries contributing to the 2011-12 GVA growth of 3.3% were Mining (6.7%), Healthcare and social assistance (6.5%) and Wholesale trade (6.2%). Administrative and support services (-2.1%) and Manufacturing (-0.9%) were the main detractors to growth.

From a state perspective, there are differing industry impacts in GVA growth. In 2011-12, the largest contributor(s) to results in each state were:

• NSW - Financial and insurance services (0.5% pts);
• VIC - Healthcare and social assistance (0.4% pts);
• QLD - Healthcare and social assistance (0.5% pts);
• SA - Financial and insurance services (0.4% pts);
• WA - Mining (2.9% pts);
• TAS - Healthcare and social assistance (0.4% pts);
• NT - Construction (2.6% pts);
• ACT - Public administration and safety (1.8% pts).

STATE FINAL DEMAND (SFD)

Volume SFD in 2011-12 recorded growth for seven out of eight states. The strongest growth was in NT (14.6%), followed by WA (13.5%) and QLD (8.6%). Growth in all these states was driven by strong Private gross fixed capital formation.

TAS was the only state to have no growth in SFD (0.0%). This result was driven by a 9.4% fall in Public gross fixed capital formation due to the completion of a number of major projects in 2010-11.

NT, WA and QLD were the only states to record SFD growth above the national Domestic final demand (DFD) of 5.0%.

QLD and WA contributed the most to Australia's DFD growth with 1.7 percentage points each while NSW contributed 0.6 percentage points and VIC by 0.5 percentage points.

STATE FINAL DEMAND, Chain volume measures
			2011-12
	2010-11	2011-12	SFD Growth	Contribution to DFD
			%	% pts
New South Wales	416 220	424 612	2.0	0.6
Victoria	329 053	336 277	2.2	0.5
Queensland	274 161	297 794	8.6	1.7
South Australia	90 535	92 393	2.1	0.1
Western Australia	173 088	196 469	13.5	1.7
Tasmania	27 437	27 442	-	-
Northern Territory	19 370	22 204	14.6	0.2
Australian Capital Territory	46 953	48 652	3.6	0.1
Australia(a)	1 376 818	1 445 843	5.0	5.0
- 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 2011-12. WA recorded the strongest growth in volume terms with an increase of 4.8%. The lowest growth was recorded in NT (0.5%), followed by VIC (2.2%). The major contributors to Australia's growth in GFCE of 3.1% were NSW (0.9 percentage points) and QLD (0.6 percentage points).


HOUSEHOLD FINAL CONSUMPTION EXPENDITURE (HFCE)

HFCE volume growth was strongest in WA (5.9%), QLD (4.4%) and VIC (2.9%). Negative growth was experienced in TAS (-1.1%). The major contributor to Australia's HFCE growth of 3.2% were NSW (0.9 percentage points) and QLD (0.8 percentage points).


PRIVATE GROSS FIXED CAPITAL FORMATION

Private gross fixed capital formation in volume terms rose in all states in 2011-12. NT had the strongest growth (80.1%) due to strength in Non-dwelling construction (236.6%) and Machinery and equipment (11.8%). WA and QLD also showed strong growth with 26.9% and 26.7% respectively. The lowest growth was recorded in NSW (1.3%) followed by VIC (1.4%).

The major contributor to Australia's increase in Private gross fixed capital formation of 13.3% was WA with 5.7 percentage points.


PUBLIC GROSS FIXED CAPITAL FORMATION

WA and ACT were the only states to record rises in Public gross fixed capital formation with 8.8% and 8.7% respectively.

The major contributor to Australia's negative growth in Public gross fixed capital formation of -2.2% was NSW with -1.5 percentage points.


TOTAL FACTOR INCOME (TFI)

Total factor incomes grew in seven states with WA (7.9%), NT (7.5%) and ACT (6.4%) recording the strongest growth. TAS recorded negative growth of 0.8%.

Australia's Compensation of employees (COE) rose by 7.2% with WA recording the strongest growth of 13.8%. TAS (0.9%) recorded the slowest growth.

Gross operating surplus (GOS) plus gross mixed income (GMI) grew 3.0% for Australia. Six states experienced growth in GOS plus GMI with the strongest growth in NT (7.6%), ACT (5.3%) and WA (4.2%). Negative growth was experienced in TAS (-3.0%) and SA (-1.1%).


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 2011-12 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.