Ecologically Sustainable Development

Are We Sustaining Australia? Report Against Headline Sustainabilty Indicators

Environment Australia, 2002
ISBN 0 642 54771 8

Value 6: Industry performance

Rationale for inclusion of issue

Economic capacity relates directly to industry capacity which is reflected in industry performance.

Indicator 8

Rationale for selection of indicator

GDP is the total market value of goods and services produced in Australia within a given period after deducting the cost of goods and services used up in the process of production, but before deducting allowances for the consumption of fixed capital. Thus GDP, as here defined, is 'at market prices'. It is equivalent to gross national expenditure plus exports of goods and services less imports of goods and services.

GDP is a familiar and internationally standardised economic measure of the value added by industry or other productive activity. Treasury advise that GDP per capita is a better measure of industry output than GNP per capita. It essentially provides a measure of the flow of income, where National Net Worth provides the stock of wealth.

Explanatory and elaborative information

In the eight year period 1991-92 to 1999-00, GDP in Australia has increased by $(b)179.5. Since 1995, GDP per capita has increased by nearly $5000.

Source: Adapted from ABS Cat No. 5206.0 Table 33

Supplementary indicator

• national expenditure on research, development and innovation.