NSW—financial services lead mainstay services exports
Services are NSW’s largest export sector. Indeed, highlighting the strength of the knowledge-based economy—services comprised four of the state’s top five export categories and 80% of the state’s industry output last FY. NSW also accounted for 42% of all Australian services exports last year (worth A$30b).
But while education, tourism and other business services account for over 70% of the state’s services exports—these mainstay industries have seen steady growth of around 7% p.a. over the five years to 2016. Meanwhile financial services exports have grown a whopping 17% p.a. over the same period.
NSW offers entrenched links to the fast growing Asian middle class, a time zone that bridges financial markets closing in the US and opening in the UK, a large, educated and multilingual workforce, a favourable business environment and solid reputation. As such, Sydney rose three spots to 8th out of 88 financial centres rated in the March 2017 Global Finance Centres Index (Chart 1). This strong base will help ensure financial services continue to drive export growth in NSW.