A report by IBISWorld, ‘Australia’s Growth Industries’ has indicated that the Australian economy grew at 2.7 per cent in the year to March 2016 – the same pace as for the past five years.
This is in contrast with growth of 3.2 per cent over the past 50 years, and 3.5 per cent in the 20th century.
Mining and financial services were the industries that accounted for the largest proportion of GDP at 8.8 per cent, followed by ownership dwellings at 8.6 per cent. Retailing accounted for 4.5 per cent.
The report outlined that Australia’s future would be dictated by focusing on Asia, and that the move away from manufacturing, which accounted for only 5.9 per cent of GDP, towards services, which contributed 76 per cent of growth, should not be stopped or reversed.
“We do have a modern economy in terms of our mix of industries, and we do have growth in enough of them in terms of value added and employment to keep the show on the road,” IBISWorld founder and Chair Phil Ruthven said. “We have a lot to cheer about, without being complacent about urgent and overdue reforms.”
The report revealed:
- Mining contributed the most to new GDP at 16.7 per cent. Retailing contributed 5.4 per cent.
- Retailing was the nation’s second biggest employer at 10.7 per cent, following health at 12.7 per cent.
- The highest average earnings for an industry were in mining, at $136,000 a year, with retailing earnings averaging $59,300. The average across all industries was $81,400.
- Health and retailing provided the most new-jobs growth of any sectors with 18.3 per cent. A total of 335,000 new jobs were created over the period, while 95,500 were lost.