Canberra is on track to become a $60 billion economy and home to more than half a million people in 2027, marking a significant milestone in the nation's capital's economic development.
In his State of the Territory Business Address to the Canberra Business Chamber today, Chief Minister Andrew Barr said the ACT had spent the past decade building one of Australia's strongest-performing economies and must now focus on lifting productivity, attracting investment and creating more opportunities for businesses and workers.
"Ten years ago, we set out to build a broader, stronger and more resilient economy," the Chief Minister said.
"Since 2016, Canberra has welcomed 100,000 more residents, created 42,000 additional jobs and grown from a $40 billion economy to almost $58 billion. Over that period, the ACT recorded the strongest economic growth of any Australian state or territory.
"Next year, we expect to pass two major milestones: more than 500,000 people and a $60 billion economy.
"These are not just statistics. They reflect the success of the people, businesses, researchers, educators and investors who have helped make Canberra one of Australia's most successful economies."
The Chief Minister said the city's next challenge would be different from the last decade.
"The next phase of Canberra's growth will be defined by productivity, innovation and international engagement. Our future prosperity will depend on how effectively we attract and retain talented people, support business investment and turn great ideas into successful enterprises."
Canberra's labour productivity has also grown at almost five times the national rate since 2015, underlining the strength of our highly skilled workforce. As Canberra looks to its next phase of growth, the Chief Minister said our city's greatest economic advantage remained its people.
"We are Australia's talent capital. We have the nation's most highly educated workforce, globally recognised universities and research institutions, and capabilities in industries that will shape Australia's future prosperity, including cyber security, defence, space, quantum technologies, renewable energy and advanced services. The task now is to convert more research, innovation and expertise into commercial success, creating more local companies that can compete globally."
To support the next decade of growth, the ACT Government will focus on:
- enabling 30,000 new homes by 2030 through planning reform and housing supply initiatives,
- the next stage of lease variation charge reform to support urban renewal and increased housing density, particularly along major transport corridors and in the CBD,
- investing in transport, health and city infrastructure that supports productivity and economic growth,
- increasing student numbers from ASEAN countries by 30 per cent by 2030 through Study Canberra,
- helping Canberra exporters expand into new markets and strengthen trade links across Southeast Asia,
- accelerating the commercialisation of research and innovation through partnerships between universities and industry, and
- increasing visitor nights from the United Kingdom, Europe, India, China and ASEAN.
"Canberra is already a national leader in knowledge-intensive industries," the Chief Minister said.
"The next task is ensuring more of that capability translates into new businesses, more private investment and higher-value jobs. We want more Canberra companies exporting to the world, attracting capital and creating opportunities here at home."
The Chief Minister also said improving productivity would become increasingly important as migration settings tighten and labour market conditions evolve.
"That means embracing new technologies, including artificial intelligence, to reduce administrative burdens, improve services and allow people to focus on higher-value work. Productivity growth is what drives higher wages, stronger businesses and better public services.
"Canberra's greatest strength is its people – the people who study, work, create, innovate and build their lives here. So, the opportunity before us is clear: to build a more productive, more diverse and more internationally connected economy. The foundations are strong. The next decade is about turning that strength into even greater opportunity."
