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DEPARTMENT OF THE TREASURY CEDA 40th Anniversary AGM Dinner Dr Ken Henry 19 November 2001

CEDA 40th Anniversary AGM Dinner

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CEDA 40th Anniversary AGM Dinner. Dr Ken Henry 19 November 2001. 1. Industry sector shares. Source: ABS 5206.0. 2. Decade average GDP growth and volatility. 3. Decade average inflation rate. Source: ABS 6401.0. 4. Unemployment rate. Source:ABS 6202.0. - PowerPoint PPT Presentation

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Page 1: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

CEDA 40th Anniversary AGM Dinner

Dr Ken Henry

19 November 2001

Page 2: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

1. Industry sector shares

Source: ABS 5206.0

0

10

20

30

40

50

60

70

80

Agriculture Mining Manufacturing Other

0

10

20

30

40

50

60

70

80

1960s 1970s 1980s 1990s

Per cent Per cent

Page 3: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

2. Decade average GDP growthand volatility

5.3

3.2 3.0

3.6

1.5

2.1

1.3

0.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

1960s 1970s 1980s 1990s

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Growth (LHS) Volatility (RHS)

Per cent Coefficient of variation

Page 4: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

3. Decade average inflation rate

Source: ABS 6401.0

2.5

10.6

7.9

2.3

0

2

4

6

8

10

12

1960s 1970s 1980s 1990s

0

2

4

6

8

10

12Per cent Per cent

Page 5: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

4. Unemployment rate

Source:ABS 6202.0

1

2

3

4

5

6

7

8

9

10

11

Mar-60 Dec-63 Sep-67 Jun-71 Mar-75 Dec-78 Sep-82 Jun-86 Mar-90 Dec-93 Sep-97 Jun-01

1

2

3

4

5

6

7

8

9

10

11Per cent Per cent

Page 6: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

5. Decade average GDPper capita growth

Source: 5204.0

3.2

1.71.5

2.4

0

1

2

3

4

1960s 1970s 1980s 1990s

0

1

2

3

4Per cent Per cent

Page 7: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

6. Decade average GDP per capita growth; Australia vs OECD

1.71.5

2.42.32.1

1.6

3.2

4.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

1960s 1970s 1980s 1990s

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Australia OECD

Per cent Per cent

Page 8: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

7. Trade Intensity (1960-01 to 2000-01)

25

27

29

31

33

35

37

39

41

43

45

1960-61 1965-66 1970-71 1975-76 1980-81 1985-86 1990-91 1995-96 2000-01

25

27

29

31

33

35

37

39

41

43

45

Trade Intensity

Per cent Per cent

Page 9: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

8. Trade Intensity (1900-01 to 2000-01)

0

10

20

30

40

50

60

1900-01 1910-11 1920-21 1930-31 1940-41 1950-51 1960-61 1970-71 1980-81 1990-91 2000-01

0

10

20

30

40

50

60

Trade Intensity

Per cent Per cent

Page 10: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

9. Effective rate of tariff assistance*

*Includes tariff equivalent of quotas

0

20

40

60

80

100

120

140

160

180

1968-69 1973-74 1978-79 1983-84 1988-89 1993-94 1996-97

0

20

40

60

80

100

120

140

160

180

Textiles, clothing, footwear and leather Motor vehicles and parts

Others Total Manufacturing

Per cent Per cent

Page 11: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

10. Structural Reform Timeline

Transport

Communications

National Competition Policy

Finance and Taxation

Traded Goods

1970 1980 1990

Utilities

Page 12: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

11. Current account balance

Source: ABS 5302.0

-7

-6

-5

-4

-3

-2

-1

0

1

2

3

1959/601964/651969/701974/751979/801984/851989/901994/951999/00

-7

-6

-5

-4

-3

-2

-1

0

1

2

3

Current Account Balance

Balance on goods & services

Net income deficit (incl. net transfers)

Per cent of GDP Per cent of GDP

Page 13: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

12. Decade averageproductivity growth

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1960s 1970s 1980s 1990s

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Labour Productivity Capital Deepening Multi-factor productivity

Per cent Per cent

Page 14: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

13. Decomposition of GDP per capita growth

Multi-factor productivity

Capital deepening

Average hours worked

Unemployment rate

Participation rate

Population of working age

Labour productivity

Labour employed as proportion of population

GDP per capita

Page 15: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

14a. Components of GDP per capita growth - working age population

-15

5

25

45

65

85

105

125

145

Population ofworking age

Participationrate

Unemploymentrate

Average hoursworked

Capitaldeepening

Multifactorproductivity

GDP per capita

-15

5

25

45

65

85

105

125

145Per cent Per cent

Page 16: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

14b. Components of GDP per capita growth - participation rate

-15

5

25

45

65

85

105

125

145

Population ofworking age

Participationrate

Unemploymentrate

Average hoursworked

Capitaldeepening

Multifactorproductivity

GDP per capita

-15

5

25

45

65

85

105

125

145Per cent Per cent

Page 17: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

14c. Components of GDP per capita growth - unemployment rates

-15

5

25

45

65

85

105

125

145

Population ofworking age

Participationrate

Unemploymentrate

Average hoursworked

Capitaldeepening

Multifactorproductivity

GDP per capita

-15

5

25

45

65

85

105

125

145Per cent Per cent

Page 18: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

14d. Components of GDP per capita growth - average hours worked

-15

5

25

45

65

85

105

125

145

Population ofworking age

Participationrate

Unemploymentrate

Average hoursworked

Capitaldeepening

Multifactorproductivity

GDP per capita

-15

5

25

45

65

85

105

125

145Per cent Per cent

Employment effect

Page 19: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

15. Average weekly hours worked

34

35

36

37

38

39

40

60-61 64-65 68-69 72-73 76-77 80-81 84-85 88-89 92-93 96-97 00-01

34

35

36

37

38

39

40

Hours / Employment

Hours per week Hours per week

Page 20: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

14d. Components of GDP per capita growth - average hours worked

-15

5

25

45

65

85

105

125

145

Population ofworking age

Participationrate

Unemploymentrate

Average hoursworked

Capitaldeepening

Multifactorproductivity

GDP per capita

-15

5

25

45

65

85

105

125

145Per cent Per cent

Employment effect

Page 21: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

14e. Components of GDP per capita growth - capital deepening

Employment effect

-15

5

25

45

65

85

105

125

145

Population ofworking age

Participationrate

Unemploymentrate

Average hoursworked

Capitaldeepening

Multifactorproductivity

GDP per capita

-15

5

25

45

65

85

105

125

145Per cent Per cent

Page 22: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

14f. Components of GDP per capita growth - multi-factor productivity

Employment effect

Labour productivity (hours)

-15

5

25

45

65

85

105

125

145

Population ofworking age

Participation rate Unemploymentrate

Average hoursworked

Capitaldeepening

Multifactorproductivity

GDP per capita

-15

5

25

45

65

85

105

125

145Per cent Per cent

Page 23: CEDA 40th Anniversary  AGM Dinner

DEPARTMENT OF THE TREASURY

CEDA 40th Anniversary AGM Dinner

Dr Ken Henry

19 November 2001