ANZ has released its latest InFocus report, which examines trends affecting Australia's regional economies. The report indicates that interest and movement towards these areas increased during the pandemic, but stronger employment and wage growth were already present before COVID-19.
According to the report, while major cities experienced extended lockdowns, regional Australia faced fewer COVID restrictions and enjoyed a boom in the agriculture sector. Mark Bennett, Head of Agribusiness at ANZ, stated: "While COVID presented many difficulties for regional economies including a lack of available labour, transport delays and localised lockdowns, the overwhelming story has been one of renewed interest and activity across regional Australia."
Bennett highlighted that during the COVID period, regions saw employment, house prices, and population growth surpass those in major cities. Additionally, key industries like agriculture and forestry contributed almost 1% to GDP growth from 2020 onwards. However, he noted that population growth was concentrated in major regional cities within densely populated states such as Victoria and Tasmania.
The report suggests that although the pandemic spurred interest in regions, factors such as strong wage growth and solid population increases were evident before COVID-19. Bennett remarked: "All of this paints a great picture for the sustainability and future growth of our regional cities and surrounding areas." He added that the challenge now is whether services, infrastructure, and expertise can meet the expectations of new residents and growing industries.