NSW POSTS SECOND HIGHEST STATE GROWTH, POSITIVE SIGNS FOR YEAR AHEAD
Wednesday 6 March 2013
Treasurer Mike Baird said the latest State Final Demand (SFD) figures cap off a year of around trend growth, with positive signs emerging for a stronger result in 2013.
The ABS National Accounts released today show NSW maintained its position with the second strongest growth of all the states for both the December quarter and through the year.
“NSW has achieved a positive growth result today, despite the challenging economic conditions our State has faced over the past year. The good news is that early signs on a number of key economic measures indicate we can expect a stronger result in 2013,” said Mr Baird
NSW’s result was driven by continued growth in household spending and a significant increase in public sector investment. Notwithstanding a slight fall in private business investment this quarter due to recent large second hand asset sales between the private and public sectors, underlying private investment continues to grow at a solid pace, driven by non-residential and engineering construction.
Following years of decline under State Labor, Mr Baird said the NSW economy is performing markedly better on a number of measures including consumer confidence, jobs growth and housing. Key results include:
· Consumer confidence – currently 11 per cent higher than the last 12 month average, and almost five per cent higher than the decade average
· Retail spending – retail sales were up 1.3 per cent in January and annual growth was much stronger than the other non-mining states
· Jobs – NSW’s unemployment rate (5.1%) has been below the national average for the past 12 months and is the second lowest in the nation. Under the O’Farrell Government, 73,400 more jobs have been created in NSW. This is three times the jobs growth of Victoria, Queensland, South Australia and Tasmania combined.
· Housing – this week NSW posted its highest number of new home approvals over a 12 month period since December 2005, with 3,503 NSW homes approved in January 2013.
“Today’s result shows NSW is now the second best performing state economy in the country and while economic challenges remain, we are seeing signs that this will continue to improve. Under Labor, NSW was consistently at the back of the pack, so it’s great to see NSW is now surging towards the top, “Mr Baird said.