20 March 2001

Financial Services Boosts Economy

Financial services has been confirmed as among the fastest-growing sectors of the Australian economy, the Minister for Financial Services & Regulation, Joe Hockey said today.

According to Business Review Weekly’s State of the Nation survey, finance and insurance is expected to grow by 5.2 per cent in 2000-01.

The survey, by economic researchers IBIS and published in the latest BRW, says that finance and insurance will account for 15.9 per cent of the $1.9 trillion in revenue produced by Australia’s industries in 2000-01.

This compares with government administration and defence (14.1 per cent), manufacturing (13.1 per cent), wholesale trade (12.8 per cent), and retail trade (10.1 per cent).

IBIS describes finance and insurance as Australia’s biggest revenue earner and will generate 6.9 per cent of the country’s GDP.

Finance and insurance will be the second-fastest growing sector of the economy over the next five years, behind communications.

"This is proof positive that the reforms of the Coalition Government have made financial services one of the linchpins of the Australian economy, and a sector that generates tens of thousands of jobs," the Minister said.

"Far from being a quarry or a holiday destination, Australia is a growing hub for financial services and a centre that can provide the world’s major financial operations with access to the Asia region."