The Spring 2016 edition of the NSW Economic Update presents
a current snapshot of the NSW economy and provides relevant points of
comparison with other Australian States and Territories.
For the third consecutive quarter, New South Wales has been the best performing State in Australia. Commsec's October 2016 State of the States Report found that NSW leads the rankings in business investment, retail trade, and dwelling starts, and holds second place in levels of unemployment, construction work, population growth and housing finance.
The Spring Update also discusses three longer term trends that may pose future challenges for policymakers:
- The trend away from full time employment to part time work;
- The high cost of housing, particularly in Sydney; and
- Increasing levels of private household debt.
Some observers are warning that, if these trends are not addressed, Australia and its States and Territories risk future problems with housing affordability; a downgrade in the nation's credit rating; and, were an economic downturn to occur, exacerbated depth and duration of a recession. The risk of these consequences arising—and the economic damage they could cause NSW—demonstrate the need for policymakers to remain vigilant as to economic challenges in the medium to long term, thereby ensuring that NSW can remain a top economic performer.
