During 2015-16, 67.0 per cent of national Australian Gross Domestic Product (GDP) growth was generated in Sydney and Melbourne – the highest level on record. The rest of the country experienced well below average growth.
This is the result of the economic evolution of the past 30 years. The rise of knowledge intensive services in our big cities, the end of the resources boom, the declining competiveness of manufacturing and other changes have created a patchwork economy.
This has led to increased inequality in terms of income and wealth not just within our cities, but across Australia. This is creating a range of social issues and is contributing to changing political dynamics, presenting many challenges for policy makers when trying to manage this patchwork economy.
Many of the issues seen nationally are also evident in the economy of the Capital Region. With increasing knowledge intensive services in central Canberra and rural economies facing challenges, the effects of uneven economic growth could also be felt in the capital region.
SGS has produced estimates of GDP for each region within Australia to understand how each local economy is performing.
In our latest seminar series, Terry Rawnsley and Marcia Keegan discussed the performance of Australia and Canberra, explaining the drivers of success, the spatial divide and the implications for future growth.