The Australian economy is increasingly being carried by key strong regions and one third of the nation is in recession, according to a PwC study.
The AFR reports that PwC analysed 2,214 geographic locations across the country and found that almost 20 per cent of income is now being generated in 10 key locations, including Sydney, Melbourne and the iron-ore-rich Pilbara region of WA. What’s more, those 10 locations account for just 0.5 per cent of Australia’s landmass.
Of the remaining locations, 35 per cent were found to be in recession.
The research analysed economic growth over the past 14 years. The biggest growth area was East Pilbara which grew by 776 per cent to $17 billion between 2000-01 and 2013-14, while the worst performing location was Nanango in Queensland which saw a 61 per cent decrease in economic output during the same period.
Rob Tyson, director of economics and policy at PwC carried out the analysis.
"Fewer key locations will be relied upon to drive an increasingly large share of economic growth," he told the AFR.
"From an economic point of view, this implies we should potentially be less worried about the fact that one in three locations are contracting.
"However, from a social and equity point of view this creates unique challenges and potential conflicts between the economic and social policy and investment imperatives."