Articles
This quarter's National Accounts includes the following articles:
Australian National Accounts: National Income, Expenditure and Product
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Quarterly estimates of key economic flows in Australia, including gross domestic product (GDP), consumption, investment, income and saving
Reference period
December 2020
Released
3/03/2021
Key statistics
- The Australian economy rose 3.1% in seasonally adjusted chain volume measures
- Through the year GDP fell 1.1%
- The terms of trade rose 4.7%
- Household saving ratio decreased to 12.0% from 18.7%
Economic overview
Unless otherwise stated all figures are in seasonally adjusted, chain volume measures.
The reference year for chain volume measures is 2018-19.
For more information about the changes in this issue, please see revisions and changes on this page.
December key figures, percentage changes (a)
| Sep 19 to Dec 19 | Dec 19 to Mar 20 | Mar 20 to Jun 20 | Jun 20 to Sep 20 | Sep 20 to Dec 20 | Dec 19 to Dec 20 | ||
|---|---|---|---|---|---|---|---|
| Chain volume GDP and related measures (b) | |||||||
| GDP | 0.4 | -0.3 | -7.0 | 3.4 | 3.1 | -1.1 | |
| GDP per capita (c) | 0.1 | -0.6 | -7.2 | 3.3 | 3.0 | -1.8 | |
| Gross value added market sector (d) | 0.2 | -0.6 | -7.9 | 3.2 | 3.4 | -2.3 | |
| Real net national disposable income | -0.5 | -0.2 | -7.3 | 5.2 | 4.9 | 2.1 | |
| Productivity | |||||||
| GDP per hour worked | 0.2 | 0.6 | 3.4 | -1.4 | - | 2.5 | |
| Real unit labour costs | 1.2 | -0.6 | -8.9 | -0.9 | 6.9 | -4.1 | |
| Prices | |||||||
| GDP chain price index (original) | -1.2 | 1.0 | -0.3 | -0.1 | 1.7 | 2.4 | |
| Terms of trade | -4.5 | 0.4 | 0.8 | 1.3 | 4.7 | 7.4 | |
| Current price measures | |||||||
| GDP | -0.2 | 0.3 | -7.5 | 4.0 | 4.2 | 0.6 | |
| Household saving ratio | 5.3 | 7.9 | 22.0 | 18.7 | 12.0 | na | |
na not available
a. Change on preceding quarter, except for the last column which shows the change between the current quarter and the corresponding quarter of the previous year. Excludes Household saving ratio.
b. Reference year for chain volume measures and real income measures is 2018-19.
c. Population estimates are as published in the National, state and territory population (cat. no. 3101.0) and ABS projections.
d. ANZSIC divisions A to N, R and S. See Glossary - Market sector.
Australian economy rose 3.1% in December quarter
Gross Domestic Product (GDP) rose 3.1% this quarter as COVID-19 related restrictions continued to ease. This follows a 3.4% rise in the September quarter 2020. The continuation in the recovery is reflected in through the year results, which improved from -3.7% to -1.1% in the December quarter.
Strong growth in the terms of trade
The terms of trade rose 4.7% this quarter off the back of higher export prices, particularly for iron ore. The strength in the terms of trade contributed to a 4.2% increase in nominal GDP, the strongest rise since September quarter 1983.
Private demand continues to recover
Domestic final demand contributed 3.2 percentage points to GDP growth. Household final consumption expenditure contributed 2.3 percentage points as constraints on households and businesses continued to lift. Private investment contributed a further 0.7 percentage points to growth.
Household spending rises
Spending by households rose 4.3% this quarter, but remained 2.7% down through the year.
Spending on goods rose 2.8% for the quarter and is up 6.2% through the year. Purchase of vehicles rose a record 31.8%, reflecting elevated household disposable income and shifting spending patterns with continued limitations on some expenditure items such as international travel.
Spending on services rose 5.2%. This reflects a partial recovery with spending down 7.8% through the year. Recreation and culture, hotels, cafes and restaurants and health all continued to rebound as movement and trading restrictions eased.
Victoria records the strongest increase in household spending
Household spending by Victorians increased 10.4% as strict lockdown restrictions were lifted. The level of spending remains weak at 7.2% below its pre-COVID level.
Household spending for the rest of Australia, excluding Victoria, rose 2.3% in the quarter.
Household saving ratio remains at a high level
The household saving to income ratio declined to 12.0% from 18.7% last quarter, remaining at elevated levels. Falls in gross disposable income and increases in household consumption both contributed to the decline in saving.
Gross disposable income fell 3.1% in the quarter, but remained strong through the year (up 4.8%). The quarterly fall reflected a decline in government support payments.
Private investment records strongest rise since September quarter 2017
Private investment rose 3.9% for the quarter. Both housing and business investment increased, supported by government initiatives and improvements in conditions.
Ownership transfer costs (15.2%) and dwelling investment (4.1%) both contributed to the increase in housing activity. The rise in business investment was driven by a 8.9% increase in machinery and equipment.
Bumper harvest leads to a record rise in Agriculture, Forestry and Fishing gross value added (GVA)
GVA rose 2.7% this quarter, with rises in 17 out of the 19 industries. Favourable weather conditions contributed to a large grain harvest, which is reflected in a 26.8% increase in Agriculture, Forestry and Fishing GVA. The impacts of this flowed through the supply chain, including in Wholesale Trade (up 3.6%) and Transport, Postal and Warehousing (up 6.1%). The increase in agricultural production was also reflected in a 23.5% increase in rural exports.
Accommodation and Food Services, Administrative and Support Services and Arts and Recreation Services, industries that were heavily impacted by the pandemic, continued to rebound this quarter as restrictions eased. Despite this, the activity in all three industries remains well below pre-pandemic levels.
Compensation of employees (COE) rises with underlying activity
COE rose 1.5% this quarter as employment and hours worked increased. Private sector COE continues to recover after being strongly impacted during the onset of the pandemic, rising 1.4% for the quarter. Public sector COE grew 1.8% for the quarter to be 6.7% higher through the year.
a. Contributions may not be additive due to rounding.
Operating surplus declines following reductions in government support for business
Gross operating surplus plus gross mixed income (GOSMI) fell 5.7%, driven by non-mining industries as support payments from government declined.
Mining operating surplus partly offset the fall, rising 8.3%. The strong growth this quarter reflects rising iron ore prices and increased demand for Australia's LNG.
Expenditure
| % Change | % Change | % points contribution to growth in GDP | |||
|---|---|---|---|---|---|
| Sep 20 to Dec 20 | Dec 19 to Dec 20 | Sep 20 to Dec 20 | |||
| Final consumption expenditure | |||||
| General government | 0.8 | 7.4 | 0.2 | ||
| Households | 4.3 | -2.7 | 2.3 | ||
| Total final consumption expenditure | 3.2 | -0.1 | 2.4 | ||
| Gross fixed capital formation | |||||
| Private | |||||
| Dwellings | 4.1 | 0.6 | 0.2 | ||
| Ownership transfer costs | 15.2 | 15.3 | 0.2 | ||
| Non-dwelling construction | -1.9 | -6.2 | -0.1 | ||
| Machinery and equipment | 8.9 | -4.3 | 0.3 | ||
| Cultivated biological resources | - | 20.7 | - | ||
| Intellectual property products | 1.4 | -5.4 | - | ||
| Public | 2.5 | 1.8 | 0.1 | ||
| Total gross fixed capital formation | 3.6 | -0.9 | 0.8 | ||
| Changes in inventories | na | na | -0.1 | ||
| Gross national expenditure | 3.2 | -0.3 | 3.1 | ||
| Exports of goods and services | 3.8 | -11.7 | 0.8 | ||
| Imports of goods and services | 4.9 | -9.6 | -0.9 | ||
| Statistical discrepancy (E) | na | na | 0.1 | ||
| Gross domestic product | 3.1 | -1.1 | 3.1 | ||
- nil or rounded to zero (including null cells)
na not available
Final consumption expenditure (FCE) 3.2%
Gross fixed capital formation (GFCF) 3.6%
Changes in inventories
Exports and imports of goods and services
Income
Income estimates are in seasonally adjusted current prices
| % Change | % Change | % points contribution to growth in GDP | ||
|---|---|---|---|---|
| Sep 20 to Dec 20 | Dec 19 to Dec 20 | Sep 20 to Dec 20 | ||
| Compensation of employees | 1.5 | 2.0 | 0.7 | |
| Gross operating surplus | ||||
| Private non-financial corporations | -7.5 | 11.7 | -1.9 | |
| Other(a) | 1.3 | 2.9 | 0.2 | |
| Gross mixed income | -12.7 | 13.6 | -1.3 | |
| Taxes less subsidies on production and imports | 727.5 | -44.2 | 6.6 | |
| Statistical discrepancy (I) | na | na | -0.1 | |
| Gross domestic product | 4.2 | 0.6 | 4.2 | |
- nil or rounded to zero (including null cells)
na not available
a. Includes Public non-financial corporations, Financial corporations, General government and Dwellings owned by persons.
Compensation of employees (COE) 1.5%
Gross operating surplus (GOS) -4.0%
Taxes less subsidies on production and imports 727.5%
Production
| % Change | % Change | % points contribution to growth in GDP | |||
|---|---|---|---|---|---|
| Sep 20 to Dec 20 | Dec 19 to Dec 20 | Sep 20 to Dec 20 | |||
| Agriculture, Forestry and Fishing | 26.8 | 20.0 | 0.5 | ||
| Mining | -1.0 | -3.6 | -0.1 | ||
| Manufacturing | 1.2 | -2.0 | 0.1 | ||
| Electricity, Gas, Water and Waste Services | -0.9 | -2.8 | - | ||
| Construction | 0.3 | -5.2 | - | ||
| Wholesale Trade | 3.6 | 4.3 | 0.1 | ||
| Retail Trade | 3.7 | 6.3 | 0.2 | ||
| Accommodation and Food Services | 7.9 | -13.2 | 0.2 | ||
| Transport, Postal and Warehousing | 6.1 | -16.8 | 0.2 | ||
| Information Media and Telecommunications | 5.2 | 2.1 | 0.1 | ||
| Financial and Insurance Services | 0.4 | 2.9 | - | ||
| Rental, Hiring and Real Estate Services | 7.4 | -3.8 | 0.2 | ||
| Professional, Scientific and Technical Services | 4.7 | 1.9 | 0.3 | ||
| Administrative and Support Services | 9.4 | -14.0 | 0.3 | ||
| Public Administration and Safety | 0.8 | 5.5 | - | ||
| Education and Training | 0.2 | 0.8 | - | ||
| Health Care and Social Assistance | 2.2 | 2.4 | 0.2 | ||
| Arts and Recreation Services | 8.4 | -8.2 | 0.1 | ||
| Other Services | 9.9 | -7.2 | 0.2 | ||
| Ownership of dwellings | 0.4 | 1.7 | - | ||
| Taxes less subsidies on products | 8.6 | -1.2 | 0.5 | ||
| Statistical discrepancy (P) | na | na | - | ||
| Gross domestic product | 3.1 | -1.1 | 3.1 | ||
- nil or rounded to zero (including null cells)
na not available
Agriculture, Forestry and Fishing 26.8%
Mining -1.0%
Manufacturing 1.2%
Wholesale Trade 3.6%
Accommodation and Food Services 7.9%
Transport, Postal and Warehousing 6.1%
Information Media and Telecommunications 5.2%
Financial and Insurance Services 0.4%
Rental, Hiring and Real Estate Services 7.4%
Professional, Scientific and Technical Services 4.7%
Administrative and Support Services 9.4%
Health Care and Social Assistance 2.2%
Arts and Recreation Services 8.4%
Other Services 9.9%
State and territory final demand
| Percentage change from Sep 20 to Dec 20 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| NSW | Vic. | Qld | SA | WA | Tas. | NT | ACT | Aust.(a) | ||
| Final consumption expenditure | ||||||||||
| General government | 1.5 | 0.8 | -1.2 | 0.1 | 4.4 | 2.1 | -0.3 | -1.4 | 0.8 | |
| Households | 3.1 | 10.4 | 2.3 | 0.9 | 0.3 | 2.4 | 5.2 | 4.2 | 4.3 | |
| Gross fixed capital formation | ||||||||||
| Private | 4.2 | 5.1 | 4.9 | -1.5 | 1.5 | 8.4 | 14.1 | 4.8 | 3.9 | |
| Public | 2.2 | 1.5 | 4.1 | 6.1 | 1.3 | 5.7 | -0.7 | 0.8 | 2.5 | |
| State final demand | 2.9 | 6.8 | 2.0 | 0.6 | 1.5 | 3.3 | 4.1 | 1.3 | 3.3 | |
- nil or rounded to zero (including null cells)
a. Australia estimates relate to Domestic final demand.
Quarterly volume measures, seasonally adjusted
Image
Description
The image is a map of Australia by state/territory showing quarterly volume measures;
New South Wales' state final demand increased 2.9% for the quarter.
Victoria's state final demand increased 6.8% for the quarter.
Queensland's state final demand increased 2.0% for the quarter.
South Australia's state final demand increased 0.6% for the quarter.
Western Australia's state final demand increased 1.5% for the quarter.
Tasmania's state final demand increased 3.3% for the quarter.
Northern Territory's state final demand increased 4.1% for the quarter.
Australian Capital Territory's state final demand increased 1.3% for the quarter.
New South Wales 2.9%
Victoria 6.8%
Queensland 2.0%
South Australia 0.6%
Western Australia 1.5%
Tasmania 3.3%
Northern Territory 4.1%
Australian Capital Territory 1.3%
Key tables
Key national accounts aggregates
Analytical expenditure aggregates
Expenditure aggregates
Expenditure on GDP
Household final consumption expenditure
Industry gross value added
Income from GDP
State final demand
Related releases
Australian System of National Accounts (cat. no. 5204.0)
The 2019-20 issue of the Australian System of National Accounts was released on 30 October 2020. This publication provides detailed, annual estimates of Australia's national accounts. These include expenditure, income and production estimates of gross domestic product (GDP), productivity estimates, sectorial accounts (for households, financial and non-financial corporations, general government and the rest of the world), and additional aggregates dissected by industry.
Australian National Accounts: Supply Use Tables (cat. no. 5217.0)
The 2018-19 issue of Australian National Accounts: Supply Use Tables was released on 30 October 2020. The Supply Use tables were introduced in the annual National Accounts in 1998 as an integral part of the annual compilation of the Australian System of National Accounts. They are used to ensure Gross Domestic Product is balanced for all three approaches (production, expenditure and income) and provide the annual benchmarks from which the quarterly estimates are compiled.
Read more
Revisions and changes
Revisions in this issue
There are revisions in this issue due to the incorporation of more up-to-date data and concurrent seasonal adjustment.
Suspension of trend estimates
Due to the impacts of COVID-19 on the economy, trend estimates for all series in the National Accounts have been suspended from June 2019 (inclusive). In the short term, this measurement will be significantly affected by changes to regular patterns in economic activity. If trend estimates were to be calculated without fully accounting for this unusual event, they would likely provide a misleading view of the underlying trend in the economy.
Changes in the seasonal adjustment process
Series with significant and prolonged impacts from COVID-19 will use forward seasonal factors to produce seasonally adjusted estimates instead of the standard concurrent seasonal factors method. The forward factors approach is better suited to managing large movements at the end of a series and will ensure that large movements do not have a disproportionate influence on the seasonal factors.
Data downloads
Time series spreadsheets
Data files
Table 1. Key National Accounts Aggregates
Table 2. Expenditure on Gross Domestic Product (GDP), Chain volume measures
Table 3. Expenditure on Gross Domestic Product (GDP), Current prices
Table 4. Expenditure on Gross Domestic Product (GDP), Chain price indexes
Table 5. Expenditure on Gross Domestic Product (GDP), Implicit price deflators
Table 6. Gross Value Added by Industry, Chain volume measures
Table 7. Income from Gross Domestic Product (GDP), Current prices
Table 8. Household Final Consumption Expenditure (HFCE)
Table 9. Changes in Inventories
Table 10. Agricultural Income, Current prices
Table 11. National Income Account, Current prices
Table 12. National Capital Account, Current prices
Table 13. Non-Financial Corporations Income Account, Current prices
Table 14. Private Non-Financial Corporations Income Account, Current prices
Table 15. Public Non-Financial Corporations Income Account, Current prices
Table 16. Financial Corporations Income Account, Current prices
Table 17. General Government Income Account, Current prices
Table 18. National General Government Income Account, Current prices
Table 19. State and Local General Government Income Account, Current prices
Table 20. Household Income Account, Current prices
Table 21. External Account, Current prices
Table 22. Taxes, Current prices
Table 23. Social Assistance Benefits Payments, Current prices
Table 24. Selected Analytical Series
Table 25. State Final Demand, Summary Components by State: Chain volume measures
Table 26. State Final Demand, Detailed Components: New South Wales
Table 27. State Final Demand, Detailed Components: Victoria
Table 28. State Final Demand, Detailed Components: Queensland
Table 29. State Final Demand, Detailed Components: South Australia
Table 30. State Final Demand, Detailed Components: Western Australia
Table 31. State Final Demand, Detailed Components: Tasmania
Table 32. State Final Demand, Detailed Components: Northern Territory
Table 33. State Final Demand, Detailed Components: Australian Capital Territory
Table 34. Key Aggregates and analytical series, Annual
Table 35. Income from GDP and Changes in Inventories, Annual
Table 36. Expenditure on Gross Domestic Product (GDP), Chain volume measures and Current prices, Annual
Table 37. Industry Gross Value Added, Chain volume measures, Annual
Table 38. National Income Account, Current prices, Annual
Table 39. National Capital Account, Current prices, Annual
Table 40. External Account, Current prices, Annual
Table 41. Indexes of Industrial Production
Table 42. Unit Labour Costs
Table 43. Indexes of Industrial Production, Annual
Table 44. Compensation of Employees, State by Sector: Current prices
Table 45. Gross Value Added by Industry, Current prices
Previous catalogue number
This release previously used catalogue number 5206.0.