Page 443 - Week 02 - Tuesday, 18 March 2014
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Since the March quarter 2002 to the December quarter 2013 the ACT economy has grown by 65.5 per cent as measured by state final demand in seasonally adjusted terms. This is an annual average growth rate of 4.15 per cent. Over the same period, employment has grown by 23.8 per cent.
The ACT’s economic fundamentals remain sound and we continue to perform relatively well compared to most other non-mining states. These economic conditions are, however, challenged due to the federal government’s ongoing fiscal restraint measures. The federal government is reducing the number of Australian public servants. The review of commonwealth government spending by the National Commission of Audit places further uncertainty on the territory’s economic future. Whether it is through tight commonwealth departmental budgets, hiring freezes or natural attrition, these actions have the potential to limit employment growth in the ACT. A decline in the APS will have a direct impact on overall economic activity in the ACT.
While the outlook has weakened slightly, there are some positive signs. The latest ABS data indicated that annual state final demand increased by 0.8 per cent over the 2013 calendar year. This compares to an increase of 0.9 per cent in domestic final demand, which is the national equivalent. Household spending and household demand have been supported by strong population growth and record low interest rates, which will support our economy in the short term. In the long term, our strong economic fundamentals and diversifying private sector will help ensure our economy continues to grow.
The ACT government is committed to supporting sustained growth and development of the ACT economy. We will work with the region, businesses, institutions and the wider community to increase economic opportunity and activity. Our business development strategy—growth diversification and jobs—is helping the private sector to create jobs by providing targeted support, programs and funding to local businesses.
The 2012-13 budget included $20 million for innovative programs to further boost our private sector. Initiatives include supporting early-stage business innovation, building new funding for clean technology and sustainability oriented companies, and creating a program to act as a single portal for trade development activities. In addition, we are making it easier for businesses to move through the processes to set up or expand their operations here.
Prudent financial management and a commitment to reform as well as investment in our people and technology will create the right conditions to support business and consumer confidence in the local economy and therefore create jobs.
The ACT government is facilitating jobs growth in the territory by: supporting a connected, technology-savvy city that takes advantage of our strong ICT skills; strengthening links with the surrounding region to drive better services, economic growth and opportunity; building on the ground-breaking tax reforms and achieving a sustainable financial future for the ACT; and supporting the development of emerging enterprises, entrepreneurs and sectors.
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