Better support for business and innovation, greater development of skills and better environmental management and government performance are key themes of a new 39-point blueprint designed to propel New South Wales to become a $2 Trillion dollar economy by 2040.
Released by the state’s Treasury and prepared by NSW Chief Economist Stephen Walters, the 2040 Economic Blueprint envisages the state’s economy growing from being worth $595.1 million in 2018/19 to reaching $2 trillion by 2040.
It includes 39 short and long term action points seven areas.
Specific actions includes:
- Supporting long-term growth by supporting a Productivity Commission examination of the states’ tax system, better promoting the state’s ‘brand’ overseas and promoting the state as a place to study, invest and do business as well as to visit.
- Supporting innovation and the development of world-class business by establishing research, development and commercialisation facilities in innovation precincts; developing programs to incentivise business to invest, innovate and hire; establishing an industry taskforce to encourage growth sectors and creating strategies to support emerging industries such as fintech, emerging technology, space and advanced manufacturing.
- Developing a healthy and productive workforce by improving vocational education and training, developing a responsive skilled immigration list, reforming education and beefing up skills and capabilities in the construction sector.
- Developing vibrant cities by improving long-term infrastructure planning.
- Developing regional economies by better commercialising food and agricultural technology research, helping regional business to diversify and capitalise on tourism growth, improving regional freight networks and working with the Commonwealth to examine ways to encourage skilled migrants into regional areas.
- Managing resources and environmental responsibilities by developing polices on hydrogen production and export, developing long-term policies for drought-proofing and water security, creating an environmental goods and services development strategy to capitalise on waste management and circular economy opportunities and working with the Commonwealth, other states and local governments to develop a national energy policy and to better deal with waste.
- Improving government performance by ensuring that state government procurement practices support and encourage innovation; making better use of date and digital technology to deliver healthcare and other government services; committing to ongoing support of the NSW Cyber Security Innovation Node and supporting the NSW Review of Federal Financial Relations.
According the report, the state’s economy will be transformed by five megatrends.
More opportunities will emerge to cater for Asian markets as consumers on that continent become wealthier and develop new tastes.
There will be a need to respond to stress placed upon the natural environment as a result of previous development.
Work methods and lives will be transformed by digital technology.
Migration patterns will influence how rapidly the state’s population ages.
Rapid change, if not managed, could fuel social tensions.
It lists numerous industries which are likely to grow in importance, including:
- industries in which the state already excels such as finance/financial technology, mining, education, tourism and events and the arts
- industries which serve domestic needs such as cyber security, medical technology and waste management; and
- emerging industries, such as advanced manufacturing, food production/agricultural technology, aerospace and defence, space, and hydrogen for fuel.
State Treasurer Dominic Perrottet welcomed the plan, saying that the Government was pursuing opportunities across several areas.
These include having Sydney evolve around into three distinct centres based around the existing CBD, Parramatta and Western Sydney Airport; dedicated precincts which support growth and emerging industries; reforming financial relations with the Commonwealth and ensuring that the state has a global outlook.
“New South Wales is already internationally recognised as a high-quality provider to the world and over the next two decades we will take this to the next level,” Perrottet said.
“I thank Stephen for his important work and know that as this generation builds for the next, the Blueprint will help ensure we keep NSW ahead of the pack and the very best state in the country.”