New South Wales (NSW) has a prosperous, growing and economically diverse industry base. It is one of Australia's economic powerhouses, primarily driven by thriving service industries.
NSW's economic diversity
Services comprise more than 86% of the value of NSW's industry output and the state accounts for 33% of Australia's services output. In 2012–13, specific service sectors made the strongest industry contributions to the state's economic growth, including:
- financial and insurance services
- health care and social assistance
- professional, scientific and technical services.
With the largest manufacturing industry in Australia, NSW accounts for 34% of the country's national output. The state houses prosperous manufacturing sectors such as:
- food products
- metal products
- primary metals, and
- machinery and equipment
- in addition to other growing areas.
NSW's medicinal and pharmaceutical exports are Australia's largest and generated A$1.1 billion in 2012-13.
Regional NSW's industry has expanded from its traditional agribusiness, manufacturing and mining origins to embrace a diverse range of high-growth areas which include:
- renewable energy and
Financial and insurance services
Financial and insurance services accounted for 12 per cent of the NSW economy in 2012–13.
This industry is concentrated in Sydney, Australia's business and finance capital, and has increased its share of gross state product by more than 4 percentage points over the last 20 years.
Australia's financial and insurance services sector continues to make a strong recovery from the effects of the global financial crisis. Low interest rates and improving conditions in a number of advanced economies have led to a marked improvement in NSW's financial and insurance services industry, as well as in related sectors.
|Sector/industry2||NSW ($ million)||% share of NSW GSP||Australia ($ million)||% share of Aust. GDP||NSW as % of Australia|
|Agriculture, forestry and fishing||7,405||1.6||34,190||2.2||21.7|
|Financial and insurance services||56,962||12.0||123,695||8.1||46.1|
|Professional, scientific and technical services||35,717||7.5||103,191||6.8||34.6|
|Health care and social assistance||29,563||6.2||97,760||6.4||30.2|
|Public administration and safety||23,229||4.9||79,576||5.2||29.2|
|Transport, postal and warehousing||22,415||4.7||73,546||4.8||30.5|
|Education and training||22,037||4.6||69,935||4.6||31.5|
|Information media and telecommunications||18,834||4.0||42,168||2.8||44.7|
|Administrative and support services||15,658||3.3||43,801||2.9||35.7|
|Rental, hiring and real estate services||13,282||2.8||38,156||2.5||34.8|
|Electricity, gas, water and waste services||12,742||2.7||44,531||2.9||28.6|
|Accommodation and food services||12,671||2.7||34,779||2.3||36.4|
|Arts and recreation services||4,740||1.0||12,199||0.8||38.9|
|Ownership of dwellings||44,843||9.4||126,631||8.3||35.4|
|Gross value added at basic prices||441,678||92.7||1,423,181||93.5||31.0|
|Gross state product4 (GDP for Australia)||476,434||100.0||1,521,465||100.0||31.3|
Source: Australian Bureau of Statistics, State Accounts, 2012–13, cat. no. 5220.0, ABS, Canberra.
- Measured as industry gross value added at current prices, which represents the value of output at basic prices (excluding taxes and subsidies) less the value of intermediate consumption at purchasers' prices.
- Industries classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006.
- The Australian Bureau of Statistics (ABS) classifies the construction and electricity, gas, water and waste services industries as 'goods-producing' industries; however, both include substantial service components.
- Gross state product is equal to 'gross value added at basic prices' plus 'taxes less subsidies on products' plus 'statistical discrepancy', which are not shown.