Sydney’s economy grew by 4.5% last financial year — the fastest rate in 15 years and the third best on record.
It pushed up the value of goods and services produced in Sydney, topping out at a record $400 billion, and saw Sydney’s share of the national economy rise to a decade-high of 24.1%, according to a report on the economic performance of Australia’s cities and regions by SGS Economics and Planning.
While Sydney fared well, accounting for nearly 40% of all growth in the Australian economy last financial year — the highest since 1991-92 — a decline in regional manufacturing production has seen the rest of the state fall behind, growing just 0.4% in 2015-16 following zero growth the year before.
The author of the report suggests if Sydney had its own Reserve Bank, its official interest rate would have been 3.75% last year — far greater than the present national rate of 1.5%.
Off the back of that analysis, and with the RBA announcement looming, Greg McKenna has written an article exploring what it would look like if varying regions of economic activity in Australia had different cash rates. Read it here.
See the report here.
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