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National accounts provide a systematic summary of national economic activity and have been developed to assist in the practical application of economic theory. The Australian system of national accounts includes national income, expenditure, product accounts, financial accounts, the national balance sheet, input-output tables and satellite accounts. At their summary level, the national accounts reflect key economic flows while at a more detailed level, they present a statistical picture of the structure of the economy.National accounts are designed to provide a systematic summary of national economic activity and have been developed to assist in the practical application of economic theory. The Australian system of national accounts includes national income, expenditure, product accounts, financial accounts, the national balance sheet, input-output tables and satellite accounts. At their summary level, the national accounts reflect key economic flows - production, the distribution of incomes across sectors, consumption, saving and investment. At their more detailed level, they are designed to present a statistical picture of the structure of the economy and the detailed processes that make up domestic production and its distribution.
In this issue the Australian economy expanded by 2.8% in 2005-06, which is lower than the 3.6% average growth experienced during the past decade. In 2005-06, Real net national disposable income (up 4.4%) grew more strongly than GDP, reflecting strong growth in the Terms of trade (up 10.8%). The Household saving ratio was -0.7% for the year, up from -1.9% in 2004-05. The index of Market sector (footnote 1) labour productivity increased by 2.2%. The index of Market sector Multifactor productivity (MFP) was unchanged in 2005-06, reflecting a 2.6% increase in Gross value added for the Market sector against an increase of 2.6% in total labour and capital inputs.
