|
Economic contribution
Summary
Over the 12 months to the end of June 2010, the finance and insurance industry contributed $121.8 billion (industry valued added, chain volume measures) to Australia’s $1.2 trillion economy.
Industry value added for the finance and insurance industry is now at the highest level on record.
Prior to this, the most recent peak was $121.2 billion over the 12 months to the end of March 2008. Over the following two years, until March 2010, the level of industry value added for the finance and insurance industry was below the March 2008 level. In particular, this was a result of the global financial crisis, which saw this fall to $117.3 billion over the year to the end of March 2009.
The finance and insurance industry has been the largest industry contributor to the Australian economy (based on ABS industry division statistics) since 2006.
Source: ABS
The finance and insurance industry contributed 10.8% to national economic activity over the 12 months to the end of June 2010. This contribution has been growing over time even though there was a small fall over the recent period.
Over the 12 months to the end of March 2008, the contribution of the finance and insurance industry reached a high of 11.2%. As the effects of the global financial crisis became more pronounced, the contribution fell to 10.6% at the end of March 2009.
After reaching a peak annual growth rate of 10.4% over the 12 months to the end of December 2007 – the strongest since 1994 – growth rates for the finance and insurance industry fell rapidly, so much so, that economic activity of the finance and insurance industry had contracted by 3.2% over the 12 months to the end of March 2009.
Over the four quarters from December 2008 to September 2009, the annual growth rates were negative. This is the first time that this has occurred over the life of the data series (which commenced in 1976).
The finance and insurance industry grew by 3.2% over the 12 months to the end of June 2010.
Industry summary
In dollar value terms, the finance and insurance industry contributed $121.8 billion to economic activity (i.e. industry value added, chain volume measures) over the 12 months to the end of June 2010. In comparison, manufacturing contributed $103.9 billion, construction $85.4 billion and mining $83.8 billion.
|
Gross value added $bn |
Jun-2005 |
Jun-2007 |
Jun-2009 |
Jun-2010 |
|
Financial and insurance services (K) |
$98.8 |
$114.8 |
$117.7 |
$121.8 |
|
Manufacturing (C) |
$104.0 |
$105.7 |
$103.4 |
$103.9 |
|
Construction (E) |
$68.4 |
$78.0 |
$84.6 |
$85.4 |
|
Mining (B) |
$70.2 |
$77.6 |
$81.8 |
$83.8 |
|
Professional, scientific, technical services (M) |
$62.1 |
$64.9 |
$71.0 |
$73.7 |
|
Health care and social assistance (Q) |
$56.9 |
$62.2 |
$68.4 |
$71.2 |
|
Transport, postal and warehousing (I) |
$52.3 |
$57.0 |
$59.5 |
$60.8 |
|
Public administration and safety (O) |
$53.3 |
$57.1 |
$61.0 |
$60.8 |
|
Wholesale trade (F) |
$48.8 |
$51.4 |
$53.7 |
$55.5 |
|
Retail trade (G) |
$47.4 |
$50.6 |
$54.2 |
$55.1 |
|
Education and training (P) |
$45.3 |
$46.8 |
$48.7 |
$49.7 |
|
Rental, hiring and real estate services (L) |
$34.1 |
$34.5 |
$36.6 |
$37.3 |
|
Information media and telecommunications (J) |
$29.7 |
$32.8 |
$34.1 |
$34.5 |
|
Agriculture, forestry and fishing (A) |
$28.7 |
$25.0 |
$30.7 |
$31.0 |
|
Electricity, gas, water and waste services (D) |
$25.7 |
$26.4 |
$28.6 |
$29.4 |
|
Administrative and support services (N) |
$25.3 |
$28.2 |
$28.6 |
$28.7 |
|
Accommodation and food services (H) |
$25.8 |
$27.0 |
$26.8 |
$25.9 |
|
Other services (S) |
$20.8 |
$21.1 |
$22.2 |
$21.5 |
|
Arts and recreation services (R) |
$8.6 |
$9.3 |
$10.2 |
$10.2 |
|
|
|
|
|
|
|
Gross value added at basic prices |
$980.9 |
$1,050.9 |
$1,107.2 |
$1,128.2 |
Over the past five years, to the end of June 2010, the average annual growth rate for the finance and insurance industry has been 4.7% per year, ranking third of the 17 industry divisions.
|
Average annual growth |
Last 5 years |
Last 3 years |
Last year |
|
Health care and social assistance (Q) |
5.0% |
4.8% |
4.0% |
|
Professional, scientific and technical services (M) |
3.7% |
4.5% |
3.8% |
|
Financial and insurance services (K) |
4.7% |
2.0% |
3.4% |
|
Wholesale trade (F) |
2.8% |
2.7% |
3.4% |
|
Electricity, gas, water and waste services (D) |
2.9% |
3.8% |
2.9% |
|
Mining (B) |
3.9% |
2.7% |
2.5% |
|
Transport, postal and warehousing (I) |
3.3% |
2.2% |
2.2% |
|
Education and training (P) |
2.0% |
2.1% |
2.0% |
|
Rental, hiring and real estate services (L) |
1.9% |
2.7% |
1.8% |
|
Retail trade (G) |
3.3% |
3.0% |
1.6% |
|
Information media and telecommunications (J) |
3.3% |
1.7% |
1.2% |
|
Agriculture, forestry and fishing (A) |
1.6% |
8.1% |
1.1% |
|
Construction (E) |
5.0% |
3.1% |
0.9% |
|
Manufacturing (C) |
0.0% |
-0.5% |
0.5% |
|
Administrative and support services (N) |
2.7% |
0.6% |
0.4% |
|
Public administration and safety (O) |
2.8% |
2.1% |
-0.3% |
|
Arts and recreation services (R) |
3.8% |
3.1% |
-0.7% |
|
Other services (S) |
0.8% |
0.7% |
-2.8% |
|
Accommodation and food services (H) |
0.1% |
-1.3% |
-3.3% |
|
|
|
|
|
|
Gross value added at basic prices |
3.0% |
2.5% |
1.9% |
Over the 12 months to the end of June 2010, the finance industry was the only industry to contribute 10% or more to economic activity. The next highest were manufacturing 9.2%, construction 7.6% and mining 7.4%.
Data in the table below relate to one year ago, three years ago and five years ago.
|
%contribution to economy |
Jun-2005 |
Jun-2007 |
Jun-2009 |
Jun-2010 |
|
Financial and insurance services (K) |
10.1% |
10.9% |
10.6% |
10.8% |
|
Manufacturing (C) |
10.6% |
10.1% |
9.3% |
9.2% |
|
Construction (E) |
7.0% |
7.4% |
7.6% |
7.6% |
|
Mining (B) |
7.2% |
7.4% |
7.4% |
7.4% |
|
Professional, scientific , technical services (M) |
6.3% |
6.2% |
6.4% |
6.5% |
|
Health care and social assistance (Q) |
5.8% |
5.9% |
6.2% |
6.3% |
|
Transport, postal and warehousing (I) |
5.3% |
5.4% |
5.4% |
5.4% |
|
Public administration and safety (O) |
5.4% |
5.4% |
5.5% |
5.4% |
|
Wholesale trade (F) |
5.0% |
4.9% |
4.8% |
4.9% |
|
Retail trade (G) |
4.8% |
4.8% |
4.9% |
4.9% |
|
Education and training (P) |
4.6% |
4.5% |
4.4% |
4.4% |
|
Rental, hiring and real estate services (L) |
3.5% |
3.3% |
3.3% |
3.3% |
|
Information media and telecommunications (J) |
3.0% |
3.1% |
3.1% |
3.1% |
|
Agriculture, forestry and fishing (A) |
2.9% |
2.4% |
2.8% |
2.7% |
|
Electricity, gas, water and waste services (D) |
2.6% |
2.5% |
2.6% |
2.6% |
|
Administrative and support services (N) |
2.6% |
2.7% |
2.6% |
2.5% |
|
Accommodation and food services (H) |
2.6% |
2.6% |
2.4% |
2.3% |
|
Other services (S) |
2.1% |
2.0% |
2.0% |
1.9% |
|
Arts and recreation services (R) |
0.9% |
0.9% |
0.9% |
0.9% |
|
|
|
|
|
|
|
Gross value added at basic prices |
100.0% |
100.0% |
100.0% |
100.0% |
Economic contribution – States and Territories (2008-09)
Over the 2008-09 financial year, the finance and insurance industry contributed $53.0 billion to the NSW economy. This contribution has been growing at the rate of $2.0 billion each year over the past five years – adding a further $10.1 billion to the NSW economy in that time.
For Victoria, the contribution of the finance and insurance industry was $33.1 billion in 2008-09 adding, on average, $1.0 billion per year to economic activity over the past five years.
|
|
Finance & insurance industry - valued added ($bn) |
|
Financial year |
NSW |
Vic |
Qld |
SA |
WA |
Tas |
NT |
ACT |
Total |
|
1990-91 |
$23.8 |
$14.1 |
$5.3 |
$3.9 |
$4.2 |
$1.4 |
$0.7 |
$1.0 |
$53.6 |
|
1994-95 |
$28.5 |
$17.3 |
$7.0 |
$4.5 |
$4.5 |
$1.2 |
$0.5 |
$0.9 |
$64.0 |
|
1999-00 |
$39.6 |
$23.8 |
$7.0 |
$4.5 |
$5.2 |
$1.4 |
$0.6 |
$1.0 |
$82.5 |
|
2000-01 |
$38.5 |
$23.9 |
$7.9 |
$5.1 |
$5.6 |
$1.5 |
$0.6 |
$1.1 |
$83.8 |
|
2001-02 |
$39.2 |
$24.8 |
$8.8 |
$5.4 |
$5.8 |
$1.6 |
$0.7 |
$1.1 |
$87.0 |
|
2002-03 |
$41.3 |
$25.4 |
$8.9 |
$5.0 |
$5.5 |
$1.6 |
$0.6 |
$0.9 |
$89.0 |
|
2003-04 |
$42.9 |
$28.3 |
$10.0 |
$5.1 |
$6.0 |
$1.6 |
$0.6 |
$0.8 |
$95.1 |
|
2004-05 |
$44.3 |
$29.0 |
$11.3 |
$5.1 |
$6.1 |
$1.5 |
$0.6 |
$0.9 |
$98.8 |
|
2005-06 |
$46.6 |
$30.0 |
$12.4 |
$5.6 |
$6.5 |
$1.7 |
$0.7 |
$1.3 |
$104.7 |
|
2006-07 |
$50.8 |
$32.9 |
$13.7 |
$6.2 |
$7.2 |
$1.9 |
$0.8 |
$1.4 |
$114.8 |
|
2007-08 |
$53.4 |
$34.1 |
$14.2 |
$6.5 |
$7.7 |
$2.0 |
$0.8 |
$1.4 |
$120.0 |
|
2008-09 |
$53.0 |
$33.1 |
$14.1 |
$6.4 |
$7.5 |
$2.0 |
$0.8 |
$1.4 |
$118.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Average change |
|
|
|
|
|
|
|
|
|
|
. Last 3 years |
$2.1 |
$1.0 |
$0.6 |
$0.3 |
$0.3 |
$0.1 |
$0.0 |
$0.0 |
$4.5 |
|
. Last 5 years |
$2.0 |
$1.0 |
$0.8 |
$0.3 |
$0.3 |
$0.1 |
$0.0 |
$0.1 |
$4.6 |
The contribution of the finance and insurance industry to the NSW and Victorian economies is very significant. Over the 2008-09 financial year, for NSW this was 15.0% and for Victoria, 12.8%.
For the other State and Territory economies, the economic contribution of the finance and insurance industry over the 2008-09 financial year was: Queensland 6.7%, South Australia 9.2%, Western Australia 5.0%, Tasmania 9.5%, Northern Territory 5.0% and the Australian Capital Territory 6.0%.
|
|
% contribution of Finance & insurance industry to each State economy |
|
Financial year |
NSW |
Vic |
Qld |
SA |
WA |
Tas |
NT |
ACT |
Total |
|
1990-91 |
11.8% |
9.4% |
5.7% |
8.8% |
6.6% |
10.9% |
8.2% |
7.0% |
8.7% |
|
1994-95 |
12.6% |
10.4% |
6.2% |
9.4% |
5.7% |
8.3% |
6.1% |
5.6% |
9.5% |
|
1999-00 |
13.9% |
11.5% |
5.0% |
8.0% |
5.3% |
8.4% |
5.4% |
5.5% |
9.9% |
|
2003-04 |
13.7% |
12.2% |
5.8% |
7.6% |
5.1% |
8.4% |
4.9% |
4.2% |
10.0% |
|
2004-05 |
13.8% |
12.3% |
6.2% |
7.7% |
5.0% |
7.9% |
4.5% |
4.5% |
10.1% |
|
2005-06 |
14.1% |
12.5% |
6.6% |
7.5% |
5.1% |
8.8% |
4.9% |
5.9% |
10.3% |
|
2006-07 |
15.0% |
13.2% |
6.9% |
8.1% |
5.2% |
9.4% |
5.1% |
6.2% |
10.9% |
|
2007-08 |
15.2% |
13.2% |
6.8% |
8.8% |
5.2% |
9.5% |
5.2% |
6.2% |
11.0% |
|
2008-09 |
15.0% |
12.8% |
6.7% |
9.2% |
5.0% |
9.5% |
5.0% |
6.0% |
10.8% |
While the finance and insurance industry experienced a contraction of 1.5% over the 2008-09 financial year as a result of the impact of the global financial crisis, average growth over the past three and five years has been solid at 4.5% and 4.3% respectively.
|
|
Finance & insurance industry - %change annual |
|
Financial year |
NSW |
Vic |
Qld |
SA |
WA |
Tas |
NT |
ACT |
Total |
|
2003-04 |
3.9% |
11.3% |
12.6% |
1.3% |
8.6% |
0.8% |
-5.1% |
-6.7% |
6.9% |
|
2004-05 |
3.2% |
2.6% |
12.5% |
-0.3% |
1.6% |
-2.5% |
0.5% |
10.3% |
3.8% |
|
2005-06 |
5.1% |
3.4% |
9.8% |
10.2% |
7.2% |
13.7% |
13.5% |
37.1% |
6.0% |
|
2006-07 |
9.1% |
9.7% |
10.5% |
10.9% |
10.1% |
8.5% |
11.9% |
10.4% |
9.6% |
|
2007-08 |
5.2% |
3.5% |
3.5% |
4.9% |
6.7% |
4.5% |
3.8% |
1.3% |
4.5% |
|
2008-09 |
-0.8% |
-2.9% |
-0.7% |
-0.7% |
-1.8% |
-0.5% |
-1.8% |
-3.2% |
-1.5% |
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
|
|
. Last 3 years |
4.5% |
3.5% |
4.4% |
5.0% |
5.0% |
4.2% |
4.6% |
2.9% |
4.2% |
|
. Last 5 years |
4.3% |
3.3% |
7.1% |
5.0% |
4.8% |
4.7% |
5.6% |
11.2% |
4.5% |
In 2008-09, 44.8% of the overall economic contribution from the finance and insurance industry was from NSW. Combined, NSW and Victoria contributed 72.8%.
|
|
% contribution to Finance & insurance industry by State |
|
Financial year |
NSW |
Vic |
Qld |
SA |
WA |
Tas |
NT |
ACT |
Total |
|
1990-91 |
44.4% |
26.3% |
9.8% |
7.2% |
7.9% |
2.6% |
1.2% |
1.8% |
100.0% |
|
1994-95 |
44.6% |
27.0% |
10.9% |
7.0% |
7.0% |
1.8% |
0.8% |
1.4% |
100.0% |
|
1999-00 |
48.0% |
28.8% |
8.5% |
5.5% |
6.3% |
1.7% |
0.7% |
1.2% |
100.0% |
|
2003-04 |
45.1% |
29.7% |
10.5% |
5.3% |
6.3% |
1.6% |
0.6% |
0.9% |
100.0% |
|
2004-05 |
44.9% |
29.4% |
11.4% |
5.1% |
6.2% |
1.5% |
0.6% |
0.9% |
100.0% |
|
2005-06 |
44.5% |
28.6% |
11.8% |
5.3% |
6.2% |
1.7% |
0.6% |
1.2% |
100.0% |
|
2006-07 |
44.2% |
28.7% |
11.9% |
5.4% |
6.3% |
1.6% |
0.7% |
1.2% |
100.0% |
|
2007-08 |
44.5% |
28.4% |
11.8% |
5.4% |
6.4% |
1.6% |
0.7% |
1.2% |
100.0% |
|
2008-09 |
44.8% |
28.0% |
11.9% |
5.5% |
6.4% |
1.7% |
0.7% |
1.2% |
100.0% |
A quick look at NSW and Victoria
New South Wales
Over the financial year 2008-09, the finance and insurance industry was the most significant contributor to the NSW economy at $53.0 billion or 15.0% of industry value added. The Manufacturing industry was the second highest contributor accounting for $31.9 billion or 9.0% of industry value added.
|
NSW - Industry division (2008-09) |
Value added ($bn) |
%contribution |
|
Financial and insurance services (K) |
$53.0 |
15.0% |
|
Manufacturing (C) |
$31.9 |
9.0% |
|
Professional, scientific and technical services (M) |
$26.6 |
7.5% |
|
Construction (E) |
$24.9 |
7.1% |
|
Health care and social assistance (Q) |
$21.6 |
6.1% |
|
Transport, postal and warehousing (I) |
$19.3 |
5.5% |
|
Public administration and safety (O) |
$17.5 |
5.0% |
|
Wholesale trade (F) |
$17.1 |
4.9% |
|
Retail trade (G) |
$16.5 |
4.7% |
|
Education and training (P) |
$15.0 |
4.2% |
|
Information media and telecommunications (J) |
$13.5 |
3.8% |
|
Rental, hiring and real estate services (L) |
$11.8 |
3.3% |
|
Administrative and support services (N) |
$10.5 |
3.0% |
|
Mining (B) |
$10.0 |
2.8% |
|
Accommodation and food services (H) |
$9.1 |
2.6% |
|
Electricity, gas, water and waste services (D) |
$7.3 |
2.1% |
|
Agriculture, forestry and fishing (A) |
$7.2 |
2.0% |
|
Other services (S) |
$7.0 |
2.0% |
|
Arts and recreation services (R) |
$3.7 |
1.1% |
|
|
|
|
|
Total all industries |
$352.4 |
100.0% |
The average annual growth rate for the finance industry in NSW has been above that for all industries over the past three and five years. Also, prior to the global financial crisis, the finance and insurance industry in NSW was one of the strongest industry performers with growth averaging 5.3% per annum, double the growth rate across all industries (2.6%).
|
NSW - Industry division |
Average annual growth last: |
|
|
3 years |
5 years |
5 years pre GFC |
|
Agriculture, forestry and fishing (A) |
5.6% |
6.4% |
-3.0% |
|
Mining (B) |
2.1% |
2.8% |
3.8% |
|
Manufacturing (C) |
-1.0% |
-1.2% |
0.3% |
|
Electricity, gas, water and waste services (D) |
1.1% |
0.8% |
-0.6% |
|
Construction (E) |
0.8% |
2.1% |
5.6% |
|
Wholesale trade (F) |
0.8% |
1.5% |
-0.1% |
|
Retail trade (G) |
2.4% |
2.4% |
3.0% |
|
Accommodation and food services (H) |
0.6% |
1.9% |
2.3% |
|
Transport, postal and warehousing (I) |
3.1% |
3.2% |
3.6% |
|
Information media and telecommunications (J) |
3.3% |
3.7% |
4.8% |
|
Financial and insurance services (K) |
4.5% |
4.3% |
5.3% |
|
Rental, hiring and real estate services (L) |
-0.3% |
0.2% |
1.9% |
|
Professional, scientific and technical services (M) |
2.4% |
1.6% |
1.2% |
|
Administrative and support services (N) |
1.9% |
1.2% |
4.3% |
|
Public administration and safety (O) |
4.7% |
3.9% |
0.5% |
|
Education and training (P) |
1.4% |
1.4% |
1.1% |
|
Health care and social assistance (Q) |
4.7% |
4.6% |
4.4% |
|
Arts and recreation services (R) |
4.8% |
4.7% |
5.6% |
|
Other services (S) |
2.0% |
-0.1% |
1.2% |
|
|
|
|
|
|
Total all industries |
2.3% |
2.3% |
2.6% |
Victoria
Over the financial year 2008-09, the finance and insurance industry was the most significant contributor to the Victorian economy at $33.1 billion or 12.8% of industry value added. The Manufacturing industry was the second highest contributor accounting for $29.5 billion or 11.4% of industry value added.
|
Victoria - Industry division (2008-09) |
Value added ($bn) |
%contribution |
|
Financial and insurance services (K) |
$33.1 |
12.8% |
|
Manufacturing (C) |
$29.5 |
11.4% |
|
Professional, scientific and technical services (M) |
$18.6 |
7.2% |
|
Construction (E) |
$16.6 |
6.4% |
|
Wholesale trade (F) |
$16.3 |
6.3% |
|
Health care and social assistance (Q) |
$16.1 |
6.2% |
|
Education and training (P) |
$13.7 |
5.3% |
|
Retail trade (G) |
$12.8 |
4.9% |
|
Transport, postal and warehousing (I) |
$12.2 |
4.7% |
|
Information media and telecommunications (J) |
$10.4 |
4.0% |
|
Public administration and safety (O) |
$10.2 |
3.9% |
|
Rental, hiring and real estate services (L) |
$8.3 |
3.2% |
|
Agriculture, forestry and fishing (A) |
$7.8 |
3.0% |
|
Electricity, gas, water and waste services (D) |
$7.8 |
3.0% |
|
Administrative and support services (N) |
$7.6 |
2.9% |
|
Accommodation and food services (H) |
$5.5 |
2.1% |
|
Other services (S) |
$5.1 |
2.0% |
|
Mining (B) |
$5.0 |
1.9% |
|
Arts and recreation services (R) |
$2.6 |
1.0% |
|
|
|
|
|
Total all industries |
$259.3 |
100.0% |
The average annual growth rate for the finance industry in Victoria has been above that for all industries over the past three and five years. Also, prior to the global financial crisis, the finance and insurance industry in Victoria was one of the strongest industry performers with growth averaging 5.8% per annum, almost double the growth rate across all industries (3.0%).
|
Victoria - Industry division |
Average annual growth last: |
|
|
3 years |
5 years |
5 years pre GFC |
|
Agriculture, forestry and fishing (A) |
-0.2% |
0.9% |
-0.8% |
|
Mining (B) |
1.3% |
-0.8% |
-3.5% |
|
Manufacturing (C) |
0.8% |
0.1% |
0.4% |
|
Electricity, gas, water and waste services (D) |
1.7% |
0.9% |
-0.5% |
|
Construction (E) |
2.1% |
3.1% |
6.7% |
|
Wholesale trade (F) |
2.8% |
1.5% |
5.3% |
|
Retail trade (G) |
3.9% |
3.7% |
4.6% |
|
Accommodation and food services (H) |
-0.8% |
1.9% |
3.7% |
|
Transport, postal and warehousing (I) |
4.2% |
4.2% |
6.3% |
|
Information media and telecommunications (J) |
3.6% |
3.2% |
4.4% |
|
Financial and insurance services (K) |
3.5% |
3.3% |
5.8% |
|
Rental, hiring and real estate services (L) |
-0.8% |
0.7% |
1.1% |
|
Professional, scientific and technical services (M) |
2.8% |
2.7% |
0.5% |
|
Administrative and support services (N) |
3.5% |
3.1% |
3.5% |
|
Public administration and safety (O) |
4.2% |
1.8% |
0.5% |
|
Education and training (P) |
1.9% |
1.7% |
1.5% |
|
Health care and social assistance (Q) |
5.7% |
5.2% |
5.1% |
|
Arts and recreation services (R) |
3.5% |
3.8% |
3.8% |
|
Other services (S) |
-0.4% |
0.5% |
0.7% |
|
|
|
|
|
|
Total all industries |
2.6% |
2.3% |
3.0% |
Updated October 2010 |