Australia's Gross Domestic Product (GDP) Breakdown: A Data-Driven Perspective
My interest in economics stems from its unique blend of data analysis and market dynamics—two areas that have always fascinated me. This analysis, initially created in 2019, was motivated by the lack of comprehensive data visualisations on the Australian Bureau of Statistics (ABS) website at the time. While the ABS website has significantly improved its charting capabilities since then, it still primarily focuses on percentage changes rather than actual dollar amounts. To address this, I developed a script using Python and Pandas to automatically download raw Excel data from the ABS website, clean it, and generate visualisations that provide a more nuanced view of Australia's GDP. This analysis utilises seasonally adjusted dollar amounts (in millions) to reveal the underlying trends in the Australian economy.
Annualised GDP: Identifying Key Contributors
Examining the annualised GDP breakdown allows us to identify the industries that play a crucial role in Australia's sustainable economic growth. As an Australian, it's not surprising to see that mining, ownership of dwellings, and healthcare emerge as the top three contributors. The bar chart below visualises the contributions of various sectors to Australia's GDP, highlighting the dominance of these key industries.
GDP Growth: A Waterfall Perspective
Since the ABS releases data quarterly, I've processed the data to provide an annualised view by summing the previous 12 months and comparing it with the 12 months prior. This approach, combined with the use of waterfall charts, allows us to visualise the dollar value swings in GDP contributions from different sectors, offering a clearer picture of longer-term economic trends.
Observations
There has been a consistent decline in Wholesale trade and Accommodation + food services. But recently a decline in mining and manufacturing has started to emerge also! Increased Government spending is contributing to the overall GDP especially in Healthcare and public administration.
Data and Methodology
The data for this analysis was sourced from the Australian Bureau of Statistics (ABS) website. I employed a Python script with the Pandas library to automate the data downloading and cleaning process. The script retrieves seasonally adjusted GDP data in dollar amounts (millions) and aggregates it to provide an annualised perspective.
Further Analysis
This analysis provides a snapshot of Australia's GDP breakdown and growth trends. Future research could delve deeper into:
- Sector-Specific Trends: Conducting in-depth analyses of individual sectors to understand the drivers behind their growth or decline.
- Global Economic Context: Examining the influence of global economic conditions on Australia's GDP and industry performance.
- Policy Implications: Analysing the impact of government policies on economic growth and industry development.