Well almost certainly not but this report is disturbing. For a decade NSW has been declining relative to the rest of Australia. The poorly-performing Labor Governments of Bob Carr, Morris Iemma and now Nathan Rees have been a factor in this decline.
Since the Sydney Olympics growth, business investment, home building, wages and jobs in NSW have performed poorly relative to the rest of Australia. The whole country will soon officially be declared to be in recession but NSW is doing particularly badly. It now contributes less than 32% of national product compared to 34.5% at the time of the Olympics. The population share in NSW has shrunk.
The slump in business investment is dramatic with just 23 cents of every dollar spent occurring in NSW compared to 35 cents in 2000.
NSW is home to one-third of Australians but only 15% of new building approvals are occurring there.
NSW’s unemployment rate is among the highest in the country and the wage premium paid to NSW workers in 2005 was $3500. Now it is just $500.
The poorly performing NSW is a drag on the national economy.