New South Wales economy is expected to be be worth $1.3 trillion dollars in 40 years' time
The New South Wales (NSW) economy is the strongest in the country and the state has been ahead of the nation in the key areas of jobs growth, building activity, infrastructure investment and retail trade.
According to a recent government report the NSW's economy will be worth $1.3 trillion dollars in 40 years' time. The Future State: NSW 2056 report, is published every five years and projects demographic, workforce and housing trends across NSW over the next four decades. It also provides a long-term projection of the state's economic and fiscal position.
Treasurer Gladys Berejiklian said the report was critical in helping the government identify significant demographic and economic trends which, if ignored, will challenge the ability to provide the future services and quality of life the community has come to expect.
The jobs market
The jobs market has changed significantly over the last 40 years and it is expected to continue to do so over the next 40 years. Data compiled by the Bureau of Statistics (ABS) shows that in net terms, the services sector has accounted for nearly all new jobs created since the mid-late '60s. In particular, NSW has seen strong jobs growth in the health and professional services sectors. The latter includes occupations such as engineers, computer system designers, accountants, lawyers and scientists.
The report expects the advancement in robotics, artificial intelligence and automation will lead to significant job losses. The good news is that job losses will be offset by technological advancement in the health and professional service industries. Facilitating growth in areas such as: the arts, engineering, artificial intelligence, robotics, nanotechnology, 3D printing, genetics and biotechnology.
Key findings from the report:
- NSW, Australia's first trillion dollar state economy.
- The population of NSW will rise to 11.2 million people – around 50 per cent more than today.
- NSW life expectancy for males will increase from 81 to 89 and 85 to 91 for females.
- 24 per cent of the population will be aged 65 and over – up from 16 per cent scurrently.
- The health sector will make up the largest share of expenses.
- The number of NSW residents aged over 100 will increase exponentially tenfold from 1,500 today to around 18,000 in 2056.
- 1.8 million new homes will be built.
- Innovation and the digital age will deliver employment opportunities for regional NSW.
The future of the construction and building industry
Looking forward 40 years, the NSW economy will be much larger and wealthier than it is today. The economy is expected to grow to over 2½ times its current size in real terms; that is, from $507 billion currently to just over $1.3 trillion by 2055-56.
Infrastructure investment is essential for the 1.8 million new homes that are projected to be built over the next 40 years. They will need services, such as water, electricity, schools, hospitals and local amenities. Alongside the basic services, transport infrastructure will need further investment to connect homes with employment opportunities. Better transport infrastructure increases the number of residential areas that are within commuting range, and is therefore, a key driver of growth and prosperity.
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