The economy of New South Wales, Australia’s biggest state by population, is in for sustained improvement after a decade under-performing.
ANZ Bank’s latest State and Territories Chartbook says: “We see an upbeat outlook for NSW even though conditions have been a sluggish of late, with economic growth moderating and the labour market softening.”
NSW has a near one-third share of the national economy. It will play an important role stimulating economic activity as the mining construction boom comes to an end.
In the spotlight is financial and insurance services which will benefit from the recovery in US and global economies, and from stronger demand for housing and related finance.
The ANZ Bank says: “As recently highlighted by the NSW Treasury Secretary, 48 of the 63 deposit-taking banks in Australia are based in Sydney and China’s top five commercial banks are also represented there.”
Key factors at play:
- A sharp upswing in residential construction activity
- Increased capital expenditure by the state government on a number of large-scale infrastructure projects, including the $10 billion to $13 billion Westconnex road project
- The state tends to be most likely to follow trends in the US economy. As this global leader heals, so too will NSW.