Lending to businesses grows year-on-year
Greater Western Sydney, a key economic region in Australia, is poised for further significant growth, according to a new report by the National Australia Bank (NAB).
The region, home to one in eleven Australians, continues to evolve as a hub for entrepreneurship and economic activity. In 2023, lending to businesses in Greater Western Sydney increased by 9.9% year-on-year, surpassing the 7.1% growth for New South Wales as a whole.
The education sector led the borrowing with an 18% rise, reflecting the region’s expanding educational facilities and population boom. The sport and recreation sector also saw substantial growth, with a 17% increase in borrowing, driven by the establishment and expansion of sports franchises and recreational projects.
The construction sector recorded a 13% growth in lending, supported by ongoing infrastructure projects like the Western Sydney Airport, slated to open in 2026. The airport is expected to create 35,000 jobs and contribute $24 billion annually to the region’s economy. Additionally, the new Metro service and M12 upgrade are anticipated to further enhance connectivity and economic prospects.
Residential property in the region has also shown robust growth, with areas like Auburn and Blacktown experiencing house value increases of 16.1% and 15.3%, respectively.
The NAB Horizons Special Report predicts Greater Western Sydney’s population will grow by 25% over the next decade, reaching 3.2 million, which will likely drive further development and investment in both residential and commercial properties.
Despite the positive outlook, the NAB report acknowledges challenges such as cost-of-living pressures and inflation, which have impacted consumer spending. However, the easing of these pressures is expected by early 2025, potentially leading to improved economic conditions.
“For generations of Australians, Greater Western Sydney has been the place to join a community, raise a family and build a business,” said Julie Rynski (pictured above), NAB executive for business metro. “But it’s also where the spirit of entrepreneurship has burned bright as the region has quietly developed into the engine room of Australia’s economy.
“The opportunities in Greater Western Sydney have never been greater, and things look set to get better. We’re looking forward to helping local businesses discover those opportunities – to kindle that spirit of entrepreneurship, take advantage of a new economy and step forward into a bright future.”
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