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
March 2021
Released
2/06/2021
Key statistics
- The Australian economy rose 1.8% in seasonally adjusted chain volume measures
- Through the year GDP rose 1.1%
- The terms of trade rose 7.4%
- Household saving ratio decreased to 11.6% from 12.2%
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.
March key figures, percentage changes (a)
| Dec 19 to Mar 20 | Mar 20 to Jun 20 | Jun 20 to Sep 20 | Sep 20 to Dec 20 | Dec 20 to Mar 21 | Mar 20 to Mar 21 | ||
|---|---|---|---|---|---|---|---|
| Chain volume GDP and related measures (b) | |||||||
| GDP | -0.3 | -7.0 | 3.5 | 3.2 | 1.8 | 1.1 | |
| GDP per capita (c) | -0.6 | -7.1 | 3.5 | 3.1 | 1.7 | 0.8 | |
| Gross value added market sector (d) | -0.7 | -7.7 | 3.2 | 3.6 | 2.0 | 0.6 | |
| Real net national disposable income | -0.3 | -7.3 | 5.0 | 5.5 | 3.4 | 6.1 | |
| Productivity | |||||||
| GDP per hour worked | 0.6 | 2.8 | -0.9 | -0.3 | 0.8 | 2.5 | |
| Real unit labour costs | -0.3 | -9.0 | -0.9 | 6.9 | 0.5 | -3.2 | |
| Prices | |||||||
| GDP chain price index (original) | 1.0 | -0.4 | -0.1 | 1.6 | 3.1 | 4.3 | |
| Terms of trade | -0.3 | 0.7 | 1.1 | 5.5 | 7.4 | 15.4 | |
| Current price measures | |||||||
| GDP | 0.1 | -7.3 | 4.0 | 4.4 | 3.5 | 4.0 | |
| Household saving ratio | 7.9 | 22.0 | 18.6 | 12.2 | 11.6 | na | |
a 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 1.8% in March quarter
Gross Domestic Product (GDP) rose 1.8% this quarter, reflecting the continued easing of COVID-19 restrictions and the recovery in the labour market. The level of economic activity is now 0.8% above December quarter 2019 pre-pandemic levels and has grown 1.1% in through the year terms.
Strong growth in the terms of trade
The terms of trade rose 7.4% this quarter and is at its highest level since December quarter 2011. Stronger export prices, particularly for iron ore and LNG, drove the quarterly rise. The strength in the terms of trade contributed to a 3.5% increase in nominal GDP.
Private demand drives growth
Domestic final demand contributed 1.6 percentage points to GDP growth. Private investment contributed 0.9 percentage points and household final consumption expenditure contributed 0.7 percentage points.
Private investment records strongest rise since September quarter 2017
Private investment rose 5.3% in March quarter to be 3.6% higher through the year, the first through the year rise since June quarter 2018. Both business and housing investment increased, supported by government initiatives and improved confidence.
Business investment was driven by a 11.6% rise in machinery and equipment, the strongest increase since December quarter 2009. Dwelling investment rose 6.4% with increased construction activity on renovations and detached housing, coinciding with the federal government’s HomeBuilder scheme.
Household spending on services continues to recover
Household expenditure rose 1.2% this quarter, but remained 1.5% below December quarter 2019 pre-pandemic levels.
Spending on services (+2.4%) drove the quarterly rise. Hotels, cafes and restaurants, recreation and culture and transport services continued to rebound as movement and trading restrictions eased. Spending on services remains down on pre-pandemic levels, particularly those impacted by the closure of international borders.
Spending on goods declined 0.5% this quarter, but remained at elevated levels. Expenditure on both food (-1.4%) and alcoholic beverages (-3.9%) fell, reflecting a shift towards dining out as restrictions eased.
Household saving ratio remains elevated
The household saving to income ratio declined from 12.2% to 11.6% and remained at elevated levels. Saving fell as growth in household consumption outpaced the rise in gross disposable income.
Gross disposable income rose 1.0% in the quarter. Compensation of employees rose 1.5%, reflecting increases in employment and hours worked as economic activity continued to recover. This was partly offset by a decline in benefit payments as additional COVID-19 support wound back.
Increased demand drives gross value added (GVA)
Easing restrictions and increased confidence drove a 1.5% rise in GVA this quarter, with increases in 15 out of the 19 industries. Government incentives on residential building contributed to a 4.4% rise in Construction. Rental, Hiring and Real Estate Services rose 5.3% driven by confidence in the housing market and low interest rates.
Transport, Postal and Warehousing, Accommodation and Food Services and Arts and Recreation Services, industries heavily impacted by the pandemic, continued to rebound this quarter as restrictions eased. Despite this, the activity in all three industries remains below pre-pandemic levels.
Compensation of employees (COE) rises with underlying activity
COE rose 1.5% this quarter with a 2.4% rise in private COE, reflecting increased employment and hours worked. Public COE fell 1.6%, reflecting redundancies paid by universities in the previous quarter. Public COE remained 3.6% higher through the year.
Operating surplus declines following reductions in government support for business
Gross operating surplus plus gross mixed income (GOSMI) fell 1.2%, driven by non-mining industries as support payments from government declined.
Mining operating surplus partly offset the fall, rising 10.2%, reflecting strong iron ore and LNG prices.
Expenditure
| % Change | % Change | % points contribution to growth in GDP | |||
|---|---|---|---|---|---|
| Dec 20 to Mar 21 | Mar 20 to Mar 21 | Dec 20 to Mar 21 | |||
| Final consumption expenditure | |||||
| General government | -0.5 | 5.0 | -0.1 | ||
| Households | 1.2 | - | 0.7 | ||
| Total final consumption expenditure | 0.7 | 1.3 | 0.5 | ||
| Gross fixed capital formation | |||||
| Private | |||||
| Dwellings | 6.4 | 7.9 | 0.3 | ||
| Ownership transfer costs | 10.6 | 26.8 | 0.2 | ||
| Non-dwelling construction | -1.1 | -9.3 | -0.1 | ||
| Machinery and equipment | 11.6 | 8.6 | 0.4 | ||
| Cultivated biological resources | 3.6 | 16.7 | - | ||
| Intellectual property products | 2.4 | -0.8 | - | ||
| Public | 2.9 | 4.9 | 0.2 | ||
| Total gross fixed capital formation | 4.7 | 3.9 | 1.1 | ||
| Changes in inventories | na | na | 0.7 | ||
| Gross national expenditure | 2.3 | 2.9 | 2.3 | ||
| Exports of goods and services | 0.5 | -6.2 | 0.1 | ||
| Imports of goods and services | 3.7 | 1.0 | -0.7 | ||
| Statistical discrepancy (E) | na | na | 0.1 | ||
| Gross domestic product | 1.8 | 1.1 | 1.8 | ||
- nil or rounded to zero (including null cells)
na not available
Final consumption expenditure (FCE) 0.7%
Gross fixed capital formation (GFCF) 4.7%
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 | ||
|---|---|---|---|---|
| Dec 20 to Mar 21 | Mar 20 to Mar 21 | Dec 20 to Mar 21 | ||
| Compensation of employees | 1.5 | 3.0 | 0.7 | |
| Gross operating surplus | ||||
| Private non-financial corporations | -2.6 | 10.9 | -0.6 | |
| Other(a) | 0.7 | 2.6 | - | |
| Gross mixed income | -1.2 | 10.6 | -0.1 | |
| Taxes less subsidies on production and imports | 62.3 | -9.2 | 3.4 | |
| Statistical discrepancy (I) | na | na | -0.1 | |
| Gross domestic product | 3.5 | 4.0 | 3.5 | |
- 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) -1.2%
Taxes less subsidies on production and imports 62.3%
Production
| % Change | % Change | % points contribution to growth in GDP | |||
|---|---|---|---|---|---|
| Dec 20 to Mar 21 | Mar 20 to Mar 21 | Dec 20 to Mar 21 | |||
| Agriculture, Forestry and Fishing | 2.9 | 34.2 | 0.1 | ||
| Mining | 0.7 | -2.3 | 0.1 | ||
| Manufacturing | 3.0 | -0.4 | 0.2 | ||
| Electricity, Gas, Water and Waste Services | -0.9 | -1.4 | - | ||
| Construction | 4.4 | -0.8 | 0.3 | ||
| Wholesale Trade | 2.9 | 6.3 | 0.1 | ||
| Retail Trade | -1.0 | 3.6 | - | ||
| Accommodation and Food Services | 5.2 | -0.1 | 0.1 | ||
| Transport, Postal and Warehousing | 5.0 | -7.8 | 0.2 | ||
| Information Media and Telecommunications | -1.9 | 0.6 | - | ||
| Financial and Insurance Services | 0.2 | 2.6 | - | ||
| Rental, Hiring and Real Estate Services | 5.3 | 2.2 | 0.1 | ||
| Professional, Scientific and Technical Services | 1.2 | 1.7 | 0.1 | ||
| Administrative and Support Services | 1.9 | -10.0 | 0.1 | ||
| Public Administration and Safety | -0.7 | 2.0 | - | ||
| Education and Training | 0.3 | 1.0 | - | ||
| Health Care and Social Assistance | 1.2 | 4.0 | 0.1 | ||
| Arts and Recreation Services | 5.7 | -0.8 | - | ||
| Other Services | 5.8 | 1.7 | 0.1 | ||
| Ownership of dwellings | 0.4 | 1.7 | - | ||
| Taxes less subsidies on products | 4.9 | 3.5 | 0.3 | ||
| Statistical discrepancy (P) | na | na | - | ||
| Gross domestic product | 1.8 | 1.1 | 1.8 | ||
- nil or rounded to zero (including null cells)
na not available
Agriculture, Forestry and Fishing 2.9%
Mining 0.7%
Manufacturing 3.0%
Construction 4.4%
Wholesale Trade 2.9%
Accommodation and Food Services 5.2%
Transport, Postal and Warehousing 5.0%
Information Media and Telecommunications -1.9%
Financial and Insurance Services 0.2%
Rental, Hiring and Real Estate Services 5.3%
Professional, Scientific and Technical Services 1.2%
Administrative and Support Services 1.9%
Health Care and Social Assistance 1.2%
Arts and Recreation Services 5.7%
Other Services 5.8%
State and territory final demand
| Percentage change from Dec 20 to Mar 21 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| NSW | Vic. | Qld | SA | WA | Tas. | NT | ACT | Aust.(a) | ||
| Final consumption expenditure | ||||||||||
| General government | -1.5 | -0.8 | 0.0 | -0.1 | 0.6 | 0.7 | 1.7 | -0.1 | -0.5 | |
| Households | 1.0 | 3.2 | -0.3 | 0.5 | 0.3 | 1.9 | -0.9 | 0.6 | 1.2 | |
| Gross fixed capital formation | ||||||||||
| Private | 7.2 | 2.0 | 2.3 | 4.6 | 10.8 | 2.5 | -12.6 | 4.9 | 5.3 | |
| Public | 0.2 | 5.8 | 3.4 | 8.5 | 4.5 | 0.5 | -3.9 | -1.9 | 2.9 | |
| State final demand | 1.5 | 2.3 | 0.4 | 1.4 | 3.0 | 1.6 | -1.9 | 0.5 | 1.6 | |
- nil or rounded to zero (including null cells)
a. Australia estimates relate to Domestic final demand.
Quarterly volume measures, seasonally adjusted
Loading map...
The map of shows quarterly volume measures of state final demand by state/territory.
New South Wales' state final demand increased 1.5% for the quarter.
Victoria's state final demand increased 2.3% for the quarter.
Queensland's state final demand increased 0.4% for the quarter.
South Australia's state final demand increased 1.4% for the quarter.
Western Australia's state final demand increased 3.0% for the quarter.
Tasmania's state final demand increased 1.6% for the quarter.
Northern Territory's state final demand decreased 1.9% for the quarter.
Australian Capital Territory's state final demand increased 0.5% for the quarter.
New South Wales 1.5%
Victoria 2.3%
Queensland 0.4%
South Australia 1.4%
Western Australia 3.0%
Tasmania 1.6%
Northern Territory -1.9%
Australian Capital Territory 0.5%
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.
Extraordinary Annual Seasonal Review (EASR)
In the March quarter 2020 issue of Australian National Accounts: National Income, Expenditure and Product, the ABS advised that the method used to produce seasonally adjusted estimates would be changed from the ‘concurrent’ method to the ‘forward factors’ method for series with significant and prolonged impacts from COVID-19.
Given the large changes in the Australian economy during the COVID-19 period and the continuing use of a forward factors approach to seasonal adjustment, the ABS has undertaken an extensive annual review of seasonally adjusted series. This review changed a range of time series treatments to ensure that the seasonal adjustment process continues to be less influenced by the large irregular movements over the past year. Revisions to most seasonally adjusted series are relatively minor, but larger than would be observed on a quarterly basis through the use of concurrent seasonal adjustment.
For some series, the review has allowed a return to concurrent seasonal adjustment, where economic conditions are assessed to have returned to pre COVID-19 patterns. For the remaining series where this is not the case, forward factors have been calculated for the next 12 months through this annual process.
Upcoming changes to publication tables
The June quarter 2021 issue of this publication, scheduled for release on 1 September 2021, will include changes to publication tables 24. Selected Analytical Series and 34. Key Aggregates and Analytical Series, Annual. The changes include the addition of analytical series for household final consumption expenditure, currently presented in the Analytical expenditure aggregates table on this page. For further information on the changes, please contact national.accounts@abs.gov.au.
Data downloads
Next quarter's release of this publication will include changes to publication tables 24. Selected Analytical Series and 34. Key Aggregates and Analytical Series, Annual. For further information regarding these changes, see the revisions and changes section above.
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.