ANALYSIS OF RESULTS


GROWTH IN GSP VOLUME MEASURES

The volume measure of Gross state product (GSP) increased in all states in 2013-14. Northern Territory (NT) experienced the strongest growth (6.5%), and was one of only two states to exceed the national Gross domestic product (GDP) growth rate of 2.5%. The other was Western Australia (WA) with 5.5%.

GSP, Chain Volume measures
		Annual growth	Average annual compound growth rate (2004-05 to 2013-14)
2013-14
	New South Wales	2.1	2.0
	Victoria	1.7	2.4
	Queensland	2.3	3.5
	South Australia	1.3	2.1
	Western Australia	5.5	4.9
	Tasmania	1.2	1.4
	Northern Territory	6.5	4.2
	Australian Capital Territory	0.7	2.7
	Australia(a)	2.5	2.8
(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. Six states had positive growth in GSP per capita due to GSP growth rates exceeding their state population growth rates for 2013-14. Victoria (VIC) (-0.2%) and Australian Capital Territory (ACT) (-0.9%) recorded negative per capita growth. This is the ACT's first fall since 1995-96.

NT recorded the highest GSP per capita growth (4.8%).

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) captures 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 2013-14. NT (5.7%), WA (2.2%) and Tasmania (TAS) (0.3%) are the only states to report positive RGSI per capita in 2013-14. The highest falls in RGSI per capita was reported by ACT ( -1.1%) and Queensland (QLD) ( -1.0%). Both New South Wales (NSW) and QLD reported their second consecutive year of falling growth in RGSI per capita.

GROSS VALUE ADDED (GVA)

Volume growth in GVA was strongest in NT up 6.7% and WA 5.8%. South Australia (SA), TAS and ACT were the weakest, rising 1.4%.

Growth in NT was driven by Construction (9.5%), Mining (11.4%), Professional, scientific and technical services (18.4%) and Health care and social assistance (7.9%). Offsetting the growth in these industries were Accommodation and food services (-3.6%) and Other services (-5.7%).

The low growth in SA was driven by falls in the Manufacturing (-2.2%) and Electricity, gas, water and waste services (-5.4%). TAS negative growth was driven by falls in Agriculture, forestry and fishing) industry (-5.9%) and Manufacturing (-3.5%). ACT negative growth was driven by falls in Professional, scientific and technical services (-8.0%) and Financial and insurance services (-9.5%).

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
2013-14
	Agriculture, forestry and fishing	-0.3	0.0	-0.2	0.8	1.0	-0.5	0.0	0.0	0.0
	Mining	0.2	0.1	0.8	0.0	3.1	0.1	1.5	0.0	0.7
	Manufacturing	-0.2	0.0	0.0	-0.2	-0.2	0.0	0.1	0.0	-0.1
	Electricity, gas, water and waste services	0.0	0.0	-0.1	-0.2	0.0	0.1	0.0	0.0	-0.1
	Construction	0.1	0.3	0.5	0.0	0.5	0.6	1.7	0.3	0.3
	Wholesale trade	-0.3	0.1	-0.1	0.0	0.0	0.0	0.1	-0.2	-0.1
	Retail trade	0.2	0.2	0.0	0.0	0.0	0.2	0.3	0.0	0.1
	Accommodation and food services	0.0	-0.1	0.1	0.0	0.1	-0.1	-0.1	0.1	0.0
	Transport, postal and warehousing	0.0	-0.1	0.0	-0.1	0.0	-0.1	0.4	0.0	0.0
	Information media and telecommunications	0.0	0.2	0.1	0.0	0.1	0.2	0.2	0.0	0.1
	Financial and insurance services	0.7	0.5	0.1	0.2	0.3	0.2	0.1	-0.3	0.4
	Rental, hiring and real estate services	0.4	0.1	0.0	0.2	0.2	0.0	0.2	0.0	0.2
	Professional, scientific and technical services	0.0	-0.2	0.0	0.2	-0.5	0.2	0.6	-0.8	-0.1
	Administrative and support services	0.4	-0.1	-0.1	-0.1	0.1	-0.1	0.3	-0.1	0.1
	Public administration and safety	0.3	0.2	0.2	-0.1	0.2	0.3	0.4	1.5	0.2
	Education and training	0.1	0.1	0.1	0.1	0.1	0.0	0.0	0.3	0.1
	Health care and social assistance	0.3	0.3	0.4	0.4	0.3	0.4	0.5	0.3	0.3
	Arts and recreation services	0.0	0.0	0.0	0.0	0.0	0.0	0.1	0.0	0.0
	Other services	0.1	-0.1	0.1	0.0	0.0	-0.1	-0.1	-0.1	0.0
	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	0.0	0.0	0.0	-0.1	0.0	-0.1	0.0	0.0	0.0
	Statistical discrepancy (P)	0.1	0.1	0.3	0.0	0.0	0.0	0.0	-0.6	0.1
	Gross state product	2.1	1.7	2.3	1.3	5.5	1.2	6.5	0.7	2.5
- nil or rounded to zero (including null cells)
(a) Gross domestic product.

At a national level, the main industries contributing to the 2013-14 GVA growth of 2.5% were Mining (9.5%), Financial and insurance services (5.3%), Health Care and Social Assistance (4.9%) and Construction (3.9%). Manufacturing (-1.8%), Electricity, gas, water and waste services (-2.1%), Wholesale trade (-2.2%) and Professional, scientific and technical services (-1.5%) and were the main detractors from growth.

From a state perspective, there are differing industry impacts in GVA growth. In 2013-14, the largest contributor(s) to results in each state were:

• NSW - Financial and insurance services (0.7% pts);
• VIC - Financial and insurance services (0.5% pts);
• QLD - Mining (0.8% pts);
• SA - Agriculture, forestry and fishing (0.8% pts);
• WA - Mining (3.1% pts);
• TAS - Construction (0.6% pts);
• NT - Construction (1.7% pts);
• ACT - Public administration and safety (1.5% pts).

STATE FINAL DEMAND (SFD)

Volume SFD in 2013-14 recorded growth for seven out of eight states. The strongest growth was in NT (4.5%), followed by NSW (2.9%) and ACT (2.1%). Growth in NT was driven by strong Private gross fixed capital formation while growth in ACT was driven by strong Government final consumption expenditure.

WA (-1.8%) was the only state to have negative growth in SFD and was driven mainly by a fall in Private gross fixed capital formation.

QLD (0.3%) and TAS (0.8%) also recorded SFD growth below national Domestic final demand (DFD) growth of 1.2%.

NSW and VIC contributed the most to Australia's DFD growth with NSW adding 0.9 percentage points and VIC 0.3 adding percentage points.

STATE FINAL DEMAND, Chain volume measures
			2013-14
	2012-13	2013-14	SFD Growth	Contribution to DFD
			%	% pts
New South Wales	448 439	461 522	2.9	0.9
Victoria	348 621	353 422	1.4	0.3
Queensland	314 025	315 123	0.3	0.1
South Australia	96 733	97 487	0.8	-
Western Australia	217 532	213 563	-1.8	-0.3
Tasmania	27 440	27 631	0.7	-
Northern Territory	27 685	28 933	4.5	0.1
Australian Capital Territory	56 704	57 875	2.1	0.1
Australia(a)	1 537 179	1 555 555	1.2	1.2
- 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 2013-14. ACT recorded the strongest growth in volume terms with an increase of 4.5%. The weakest growth was experienced in TAS (0.6%) and QLD (0.9%).


HOUSEHOLD FINAL CONSUMPTION EXPENDITURE (HFCE)

HFCE in volume terms rose in all states in 2013-14. The growth was strongest in NT (3.4%), followed by NSW (2.8%), QLD (2.2%), WA (2.1%) and VIC (2.0%).


PRIVATE GROSS FIXED CAPITAL FORMATION

Private gross fixed capital formation in volume terms rose in three states in 2013-14. NT had the strongest growth (8.0%) due to strength in Machinery and equipment. VIC and SA also showed positive growth with 6.8% and 1.8% respectively. The largest negative growth was recorded in ACT (-12.9%) and WA (-8.1%).


PUBLIC GROSS FIXED CAPITAL FORMATION

NSW, WA, TAS and ACT were the only states to record rises in Public gross fixed capital formation with 34.1%, 4.3%, 3.1% and 2.1% respectively.


TOTAL FACTOR INCOME (TFI)

Total factor incomes grew in all states with NT (10.0%) and WA (9.3%) recording the strongest growth. TAS (1.4%) and ACT (1.5%) recorded the weakest growth.

Australia's Compensation of employees (COE) rose by 2.9% with NT (12.5%) and NSW (5.0%) recording the strongest growth. ACT was the state to record the weakest growth (-4.6%).

Gross operating surplus (GOS) plus gross mixed income (GMI) rose 5.2% for Australia. All states except NSW experienced growth in GOS plus GMI with the strongest growth in ACT (15.8%) and WA (14.0%). NSW was the only state to experience negative growth with a fall of 0.2%.


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.

The highest Gross household disposable income per capita in 2013-14 was in ACT and the lowest was 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.