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Revealed: Which industries deliver the best growth – and which don’t

November 24, 2021

Revealed: Which industries deliver the best growth – and which don’t

The Australian Bureau of Statistics has published a comprehensive breakdown of gross state product, offering a glimpse into which industries delivered the best economic growth last financial year.

The Australian Bureau of Statistics has published a comprehensive breakdown of gross state product, offering a glimpse into which industries delivered the best economic growth last financial year.

The ABS’s state accounts – published as part of the broader National Accounts – provide a detailed snapshot of the economic performance of each state and territory in the previous financial year.

But a deeper dive into these data sets reveal which Australian industries exhibited the greatest growth, and which languished under the adverse conditions created by COVID-19.

The winners

It was an impressive year for the Agriculture, Forestry and Fishing industry, which grew 18% through the year, eclipsing all other industries to deliver the greatest increase in output.

This growth was helped along by an end to drought conditions across some states and a general improvement in the weather, helping increase the productivity of many crops and putting an end to three years of productivity contractions in South Australia and NSW.

These bumper crops also benefited South Australia’s Wholesale Trade sector, with sales of machinery, equipment and vehicles lurching upwards 11.6%.

The strength in Wholesale Trade wasn’t confined to one state, though. At a national level, the sector lifted 11% as demand for cars grew across the country.

The Health Care and Social Assistance sector also enjoyed a robust year (up 7%), with medicare and NDIS expenditure in NSW contributing strongly to the industry’s growth in that state.

Mining numbers hide real story

At a national level, the mining sector appeared to deliver a strong performance, ending the 12 months to 30th June up 9%, but a deeper dive into individual state figures reveals a two-speed industry.

Mining operations in NSW, Victoria, Queensland and the Northern Territory all fell, with the latter two experiencing significant declines.

Queensland’s mining output dropped 0.8 percentage points, while the Northern Territory dropped 3.4 percentage points.

These sizeable falls were driven by drops in prices for natural gas and oil.

Meanwhile, output in Western Australia climbed 0.2 percentage points, helped along by strong iron ore prices.

“Soaring prices for iron ore resulted in nominal [gross state product] growth of 15.8% [for Western Australia],” the ABS noted.

Sources


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