The implications on Western Sydney of the rise of Asia was the focus of a presentation by one of Australia’s leading economists, Chris Richardson, of Deloitte Access Economic, at a seminar at the Parramatta Parkroyal.
Mr Richardson told some 90 regional business people that while times were tough, with part of the negative impact being the rise of the exchange rate and the rise of interest rates relative to other nations, the tide was turning.
“Manufacturing is your core strength; 20 per cent of [the Western Sydney] economy is manufacturing and what has happened to the exchange rate is real hell,“ he told the audience.
“On how you measure it, manufacturing and, in particular, residential construction sector have been hard hit.”
Mr Richardson said that to date Asia had been a competitor rather than a customer of Western Sydney and that the region would overcome the initial “pain” brought about by Asia’s economic development.
“Asia’s rise and its [negative] impact on Western Sydney is going to change, in fact, we are already beginning to see it change,” he said.
Western Sydney was a growth centre of NSW with a positive future and would benefit from the increased consumption of the growing middle class in Asian countries.
“It is arguably the growth centre of this state and, depending on how you measure it, over the last year Western Sydney either generated just under or just over half of all the growth in Sydney.
“That’s pretty impressive and not just last year, it is a long standing trend this is growth centre “
He said Western Sydney was a “marvellous growth engine” with an economy that is much bigger than many other states.
“You have an economy which is not just a success story – and all to often an unsung success story – which is a growth engine for the state and one where the economy is generally continuing to diversify from strong reliance on manufacturing construction and becoming relatively closer to the NSW average as mature as an economy.”
He said as Australia was ageing Western Sydney had a younger demographic and was achieving above average growth, which would continue.
Mr Richardson’s presentation was part of Parramatta City Council’s annual Parramasala cultural event, of which Deloitte was a major sponsor
Deloitte hosted the business seminar in parallel with the community event at the Parramatta Parkroyal.
Peter Forrester, managing partner, of Deloitte Western Sydney, in acknowledging the ethnic mix of Western Sydney said its sponsorship reflected the firm’s own cultural diversity and its commitment to Western Sydney.
Mr Forrester said he was very confident of the future of Western Sydney and was planning to relocate to the ($170 million, 19-level) Eclipse Tower, nearby in the Parramatta CBD, in February 2013, which would enable staff numbers to increase to 500 people.
Deloitte, which has been in Parramatta for 30 years, is the only major audit, tax, and consulting and financial services firm in Western Sydney.
Premier Barry O’Farrell, who is also the Minister for Western Sydney, David Borger, the Western Sydney director, of the Sydney Business Chamber, Giam Sweigers, CEO, of Deloitte Australia and Parramatta Lord Mayor, John Chedid, were among the attendees.
