- Key indicators suggest potential economic improvement for regional businesses in 2025
- Agriculture sector maintains growth trajectory, still on track to be $100 billion industry by 2030
- Property values, investment in food and beverage manufacturing and customer deposits all up
Regional and rural based businesses are holding strong and remain cautiously optimistic about the year ahead, according to NAB's new 2025 Regional & Agribusiness Horizons Report, released today.
The fourth annual Horizons Report – entitled 'Embracing Opportunity' – combines data from NAB's regional bankers, specialist teams, and customer surveys to provide insights into the economic conditions, property trends, and investment opportunities shaping regional and rural Australia.
NAB Executive for Regional and Agribusiness Khan Horne said the report showcased the considerable resilience and optimism of regional Australian businesses as they strived to tackle a myriad of ongoing challenges.
"Even with some economic uncertainty this year, we're confident our regional and rural businesses are in good shape to deal with – and withstand – the potential headwinds," Mr Horne said.
"Those on the land, in country towns and in regional hubs are experts at dealing with the unexpected. While Australian agriculture continues to thrive and many regions have experienced bumper harvests and near perfect conditions, we also recognise others are facing a range of specific challenges such as commodity price fluctuations, tough trading conditions and the escalating toll of severe weather events.
"Overall, the picture is solid and while growth opportunities exist, they will likely depend on how well businesses adapt to the shifting conditions in 2025."
Key Horizons Report findings:
Agriculture keeps on delivering: Back-to-back bumper years expected for the sector with ABARES forecasting a $91 billion turnover for FY26, which if delivered, would be the third highest turnover ever recorded.
Food and beverage investment jumps dramatically: The ripple effects of a strong agri sector performance are evident in the astonishing 11.9% growth in investment in food and beverage manufacturing over the past year.
Regional property valuations soar: With 5.3% annual growth, regional property valuations easily outpaced the 2.6% increase recorded in metropolitan areas. By April 2025, the median value hit a new peak of $673,373 – a staggering 59% increase on pre-COVID prices – driven by ongoing internal migration and the perceived lifestyle benefits of regional living.
Optimism abounds: Regional Australians remain optimistic about the future, with one in four expecting improvements in their lives, although living costs continue to be a significant concern. The appeal of regional living is reflected in strong population growth, driven by a better lifestyle and lower living costs compared to capital cities.
"There are good opportunities ahead and while uncertainty may be in the air for some, I'm confident the core strength of Australia's regional and agribusinesses will set us up to navigate whatever 2025 brings.
