The State Accounts for the 2013-14 financial year released today by the ABS show that Gross State Product (GSP) in QLD rose 2.3% for the year (against GDP growth of 2.5%). The Northern Territory (+6.5%) and WA (+5.5%) led the way with the ACT coming up the rear at just +0.7%. When we adjust for population growth, the GSP per capita increase in QLD was +0.6% versus +0.8% GDP per capita nationwide.
In Queensland GSP growth came predominantly from Mining (which contributed 0.8ppts) and Construction (0.5ppts) with Agriculture as the biggest drag (subtracting 0.2ppts).
Queensland joined the ACT as the only State or Territory to see negative Real Gross State Income (RGSI) per capita (-1.1%) while in NT it grew 5.7%. The reason for the decline from GSP per capita to RGSI per capita is that the latter measure accounts for the decline in the Terms of Trade that Queensland exports will have witnessed over the period; as a net exporting state this has a negative impact. Essentially, although our per capita product increased, the decline in the relative price received for the export component of that production will have negatively impacted on the real purchasing power of that income. Conversely, for example, while GSP per capita in NT rose 4.8%, it’s RGSI per capita was up 5.7% indicating that the shift in the Terms of Trade positively impacted NT (i.e. it is a net importer).