Australia has a strong and resilient economy, which was the 15th largest in the world in 2006. The resilience of the Australian economy has seen 16 consecutive years of economic expansion to 2007. Over this period, GDP growth has averaged an impressive 3.5% per annum. The Australian economy is forecast to grow above the OECD average in 2008.
Australia has capitalised on close ties to the fast growing Asian markets to propel economic growth. Economic growth has also been supported by higher productivity, a result of comprehensive and ongoing economic reforms, and robust financial, legal and political systems. These have strengthened the foundations of Australia’s competitiveness, with the World Economic Forum ranking Australia 18th out of 127 countries for business competitiveness – a foundation for national prosperity.
Australia has a highly efficient business sector which operates under a well-established corporate governance framework. Australia was rated seventh in the world for business efficiency, and corporate boards were ranked second for effectively supervising the management of companies. Australia’s financial regulatory environment is recognised as one of the best in the world for promoting stability and certainty and its banks are well managed and profitable.
The New South Wales economy is the largest and most diverse in Australia. The value of the goods and services produced in the State is higher than many national economies in the Asia Pacific. More than 80% of New South Wales' industry income is derived from services, highlighting the strength of its knowledge-based business services and creative industries. Sydney itself contributes nearly one quarter of Australia’s gross domestic product.
New South Wales has a strong platform for accelerating economic growth. New South Wales has the highest level of business investment and research and development expenditure in Australia. The State is also the most populous, with increasing rates of population growth in recent years.
New South Wales continues to enjoy AAA credit ratings from Standard & Poor's and Moody's, a testament to its sound financial position and capacity to withstand changing economic circumstances.
A. Economic and Business Climate