The New South Wales economy has been exceptionally strong over the last few years with the outlook for growth to remain above trend this year and for the next two years. This would mark six years of above-trend economic growth for New South Wales, a feat not seen since the 1990s.
In per person terms, New South Wales has been the fastest growing state economy over the past three years thanks to strength in household consumption, dwelling investment and public investment.
Over the past two years, public investment in New South Wales has contributed, on average, ½ a percentage point per year to economic growth. This strong performance—around four times its historical average contribution—is forecast to be repeated in 2017-18 and 2018-19, driven by the State’s record infrastructure program.
NSW’s economic strength drives jobs growth
The NSW economy has been on a remarkable growth track since 2014-15, with the Government’s once-in-a-generation infrastructure investment helping drive the unemployment rate down as the State’s participation rate is near record levels.
The State’s economic boom is forecast to continue, with the record infrastructure program contributing to a pick-up in business investment.
Maximising economic momentum through strong fiscal management
The State’s record infrastructure program and its spill-over into private investment continues to drive growth, with nearly half of the entire nation’s pipeline of public engineering activity underway in
New South Wales.
Our innovative asset recycling strategy has allowed us to reinvest the proceeds of long–term leases and turn transactions into much needed schools and hospitals, as well as road and rail networks connecting our communities across the State.
Business investment is forecast to grow faster than at any time since the 2008-09 global financial crisis, supported by public infrastructure investment. Strengthening global and national economies are expected to continue to boost exports, also spurring businesses to increase investment and jobs.
Low unemployment rate, high workforce participation
Robust construction activity and expanding health services have contributed to more than 500,000 new jobs created since April 2011.
The strong labour market momentum is forecast to continue, with employment growth of 3 per cent forecast for 2017-18.