28
Jul
2014

Mapping the Australian economy

More than three-quarters of all economic activity in Australia happens on less than one per cent of the nation’s land mass. In today’s services-driven economy, Australia’s cities are the engines of material prosperity.

For a long time agriculture was the backbone of our economy, as we rode on the sheep’s back. After World War Two prosperity shifted to suburbia, with manufacturing employing one in four Australians. This report shows that Australia’s economy is increasingly driven by knowledge-intensive services located in Australia’s large cities. Within these cities the most intense and productive economic activity is concentrated around central business districts and a small number of other business hubs. The way these areas draw large numbers of businesses and workers together makes them all more productive.

Grattan Institute’s new Cities report raises important questions about whether patterns of housing and transport development that served Australia’s cities so well during the golden age of manufacturing are the right ways to promote prosperity and opportunity into the twenty-first century.

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