Canberra's Economy
A Growing Economy
Over the 10 years to June 2009, the ACT’s Gross State Product (GSP) increased by 40 per cent, compared with growth in Australia's Gross Domestic Product of 36 per cent during the same period.
During the economic downturn, the ACT was a star performer among advanced economies globally and among Australia's states/territories, with growth of 2.5 per cent in 2009.
A Confident Business Sector
Canberra businesses have a buoyant and positive outlook. Our businesses have consistently been at the high end of confidence levels compared with other Australian states and territories. For example, in March 2010, small to medium enterprises (SMEs) in the ACT were more confident about their business prospects over the next year than SMEs in any other state or territory.
Over the two years to September 2009, the sale of goods and services in the ACT increased by 19.7 per cent, more than in any other state or territory.
Business investment in the ACT increased by 191 per cent, compared with an Australia wide increase of 150 per cent.
Australia's high corporate governance standards fuel business confidence. Consistently ranked in the top four countries in the world, Australia's corporate governance rating of 7.32 in 2009 was the highest in the Asia Pacific region.
Canberra's Strategic Location
Canberra is strategically positioned between the major state capitals of Sydney and Melbourne. A modern freeway puts Sydney’s metropolitan area within a three-hour drive. Each week, there are 380 aircraft flights between Canberra and Sydney, 250 between Canberra and Melbourne and 130 between Canberra and Brisbane, plus daily direct flights to most state capitals and regional centres. With the airport operating 24 hours a day, located within 5km of the CBD, the benefits for both freight and passenger travel include lower site costs and no aispace congestion.
The ACT also has strong employment links with the surrounding region. There are over 22,500 non-ACT residents travelling to the ACT each day for work, and over 4,000 ACT residents travelling to the surrounding region for work each day.
A Highly Educated Population
Canberra has the most highly educated workforce in Australia. Of the ACT's population aged 15 to 64 years, 25 per cent have a bachelor’s degree, compared with 16.4 per cent nationally. A further 9.9 per cent of Canberrans have a post-graduate degree compared with the national average of 4.1 per cent.
Employee Earnings and Household Incomes
In December 2009, full-time average weekly ordinary time earnings in the ACT were A$1,355.90, which was 13 per cent higher than the Australian average. Earnings and the high workforce participation rate are also reflected in disposable household income figures for Canberra. The gross household disposable income per capita at A$54,890 is around 50 per cent higher in Canberra than the national average.
A Productive Workforce
Canberra’s workforce is highly productive. In 2008-09, Gross State Product per capita in the ACT was A$71,630, a level 30 per cent above the national average of A$55,195.
In December 2009, full-time average weekly ordinary time earnings in the ACT were A$1,355.90, which was 13 per cent higher than the Australian average. At the same time, the labour force participation rate in the ACT was 72.4 per cent, compared with an Australian average of just 65.2 per cent.
A Highly Networked City
The high quality of infrastructure serving Canberra provides many advantages to businesses. Canberra was one of the first cities in the world to introduce a broadband fibre-optic network, and the ACT ranks alongside Singapore, Finland, Sweden and the USA as having one of the world’s most IT-connected communities.
Operating a Business in Canberra
Canberra is home to over 25,000 businesses ranging in size from multinationals that have strategically sought to benefit from the Australian Government's A$200 billion procurement decisions, right down to micro businesses servicing larger businesses, the public sector or the needs of local people.
Canberra is also home to many of Australia’s national industry associations, representative organisations and professional societies, including the Australian Chamber of Commerce and Industry, the Australian Industry Group and the Australian Institute of Company Directors.
While the economy is diverse, it is undeniably oriented towards the service industries and public administration. The private sector in Canberra is also known for its unique character, global outlook and innovation. In December 2009, 17 per cent of SMEs in the ACT reported exporting in the past year compared with a national average of just 11 per cent.
People and the Region
Canberra has a young, vibrant and growing population totalling 353,000 in 2010. The ACT region, comprising the ACT and local government regions in the south-eastern region of New South Wales, has a population of over 550,000.
Canberra businesses enjoy access to a multicultural population, with a range of language skills. Almost a quarter of the population was born overseas and 15 per cent speak a language other than English at home. with around 90,000 residents born overseas, representing more than 170 different countries. As the national capital, Canberra is also home to 90 diplomatic missions.
Retail Spending
With its high disposable incomes, Canberra supports a strong retail sector. Over the five years to December 2009, retail turnover in the ACT increased by 25 per cent to A$478 million.
Canberra's consumers are keen to embrace new products and services, and are environmentally conscious as well as prepared to pay extra for environmentally friendly products and services.
Canberra's population forecast to increase by 42 per cent to 500,000, will support continued growth in retail activity.
