New South Wales is Australia's largest State economy, with 32% of the nation's GDP. The next largest State, Victoria, contributes 24%.

With a population of 7.0 million, or one third of the Australian total, New South Wales has a large and growing domestic market. Per capita income, at almost $52,000, was the second highest of all states in 2007-08. In 2007-08, 34% of national household spending occurred in the State, totalling $211 billion.

New South Wales also attracts the largest share of private business investment in Australia. In 2007-08, almost $46 billion or 25% of national business investment occurred in the State. This represented growth of 17% over 2006-07, and marks a record annual level of business investment for any state. New South Wales has recorded real average increases of 10.5% per annum in business investment in the five years to 2007-08.

New South Wales has extensive links to international markets. In 2007-08, the State’s exports of goods and services were valued at more than $54 billion on a balance of payments basis, representing 22% of national exports. Exports of goods and services grew by 3.5% in real terms in 2007-08. Services exports grew by 5% in this period, reflecting the diversification of the State's export base, which is less reliant on resources than some other states.