Financial services a cornerstone
The latest report produced by the Commonwealth’s inward investment agency, Invest Australia, has confirmed the status of the financial services industry as one of the cornerstones of the Australian economy.
The Investment Australia benchmark report, released today, reveals that finance and insurance is the third largest sector in Australia’s economy, generating 7.8 per cent or A$67 billion of real gross value added — up from 6.5 per cent two decades ago.
It said Australia’s economy was now a service-based economy, with service industries accounting for over 70 per cent of total gross value added.
“The finance and insurance industry is almost equivalent to agriculture and mining combined (the two industries traditionally associated with Australia’s economic wellbeing),” the report said. “And its expansion has also aided growth in related sectors such as communications, property and business services.”
It said Australia’s finance and insurance sector had been one of the country’s highest performing industries, achieving an average annual growth rate of 4.8 per cent a year between 1986 and 2006.
The report said this was well above the combined average for all industries (3.5 per cent) and reflects the strength of Australia’s service-based economy.
AUTHOR
Mike Taylor
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