It’s official: New South Wales is now the fastest growing state in Australia. This is due to a booming growth in financial services which accounts for 11.5 per cent of the NSW Gross State Product (GSP).
The same applies in Victoria where financial services accounts for 10.4 per cent of GSP.
These statistics have been revealed in a new report on the state of the financial services industry in Australia commissioned by the Financial Services Council and UBS Global Asset Management – State of the Industry: Financial Services and SMSFs in Australia.
John Brogden, CEO of the Financial Services Council said: “Financial services is now Australia’s largest industry accounting for nine per cent of GDP − more than mining and manufacturing.”
“While growth in other industries is slowing down, financial services is continuing to grow,” Mr Brogden said.
“Our report shows that financial services is making a significant contribution to the Australian economy. It pays more corporate tax than any other sector, employs more than 400,000 people – most are well-remunerated and well-education − and contributes $130 billion to the economy each year.”
“Yet financial services it is still to be recognised as an industry in its own right,” he said.
The FSC-UBS report also shows that the way that Australians manage their superannuation is having an ongoing impact on the growth of Australia’s emerging services economy. From a relatively small population of 23 million, Australia has the fourth largest pool of superannuation in the world.
“With the right policy settings, Australia has an enormous capacity to increase financial services exports,” Mr Brogden said.
According to the FSC-UBS report, exports of financial services increased by 43 per cent in 2012-13 − from $2 billion to $2.9 billion.
Bryce Doherty, Head of UBS Global Asset Management in Australia said: “Australia has a real expertise in financial services, particularly in funds management and superannuation that is highly regarded around the world.”
“There is a huge opportunity for us to both export our investment expertise offshore as well as enable access for Australians to international investment opportunities. We are very supportive of the work done by the FSC to develop the Asia Region Funds Passport to facilitate mutual recognition between Australia and other economies.”
The pilot program is expected to be up-and-running by 2016.
