Things are pretty great … as long as this is where you work. Photo: UnknownThree Sydney districts contributed nearly one-quarter of all the growth in ‘s economy last financial year as inner-city job hubs power ahead of the rest of the nation.
New analysis of district-level economic performance has revealed huge variations across the country.
Sydney’s CBD area, the inner northern suburbs and the Ryde district together delivered 24 per cent of gross domestic product growth in 2015-16, research by consultancy group SGS Economics and Planning shows.
All three districts are within Sydney’s “global economic corridor” which arcs from Macquarie Park through the CBD to Kingsford Smith airport. Many high value, knowledge-intensive industries have clustered in that corridor including finance, IT, professional services, engineering, research, healthcare, marketing and media. The Baulkham Hills and Hawkesbury district also registered very strong growth.
Terry Rawnsley, an economist at SGS Economics and Planning and the report’s author, said the city’s booming construction and finance industries underpinned the strong performance.
“Inner Sydney is not only driving the Sydney economy but also the national economy,” he said.
Inner Melbourne also stood out – it contributed 11.4 per cent of ‘s GDP growth last financial year.
But the report warned that the disparity in growth rates across the country was now greater than at any time during the mining boom.
The economies of five statistical districts in regional NSW contracted in 2015-16 including Riverina (-0.6 per cent), Murray (-0.5 per cent) and the Central West (-0.3 per cent)
While there were patches of strong economic growth in Western Sydney, it was hampered by the ongoing decline in manufacturing, one of the region’s major employers. Manufacturing’s share of Sydney’s economy hit a record low of 5.7 per cent in 2015-16.