Stronger Regional Economies

09 Nov 2026 | By Nathan Wallwork, Head of Economics & Policy

Regional NSW is already a major economic force. It is home to 3.3 million people, 1.4 million jobs, 290,000 businesses and a $305 billion economy.

Our members know that the future of regional economies is critical to not only their own business and local community, but to the wellbeing of our entire state. This is why we have chosen to focus on the future of regional NSW to mark our 200-year anniversary.

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The idea at the heart of this paper is a simple one: people move towards opportunity.

Strong economies attract people. Growing populations, in turn, strengthen local economies by expanding labour markets, supporting services, increasing business investment and creating more vibrant communities. Every 100 working-age people who move to regional NSW to fill new jobs add approximately $35 million to the regional economy and support a further 75 jobs.

However, our analysis shows that regional NSW is not generating enough opportunities. 

In response, we are calling for a more ambitious vision for the future of regional NSW, backed by new policies to help regional places generate more opportunities and support faster growth in their economies, workforces and populations. 

GROWTH ZONES

In this paper Business NSW calls on the NSW Government to:

1. Work with regional businesses, communities, institutions and local governments to identify priority regional growth locations and establish a limited number of Growth Zones around regional NSW.
2. Use Growth Zones to:

• Coordinate housing, infrastructure, skills, planning and economic development decisions around the agreed strategic objectives for each Growth Zone
• Invest ahead of demand in enabling infrastructure, housing and serviced employment land needed to unlock private investment
• Introduce targeted programs that strengthen industries and promote private investment
• Commit to co-investment with businesses through targeted incentives and concessions to be used to promote new activity and growth, holding the recipient businesses to account to ensure concessions create a strong social and economic dividend
• Strengthen local workforces, create local opportunities and deliver benefits for local people.

The opportunity in regional NSW is substantial. We have identified a group of regional cities and centres that are already projected to add 345,000 residents and 155,000 jobs by 2041. Even modest improvements in growth outcomes could generate billions of dollars in additional economic activity and create opportunities for thousands more people to live and work in regional NSW.

As NSW approaches the next decade of economic and demographic change, the choice is clear: continue to manage growth where it happens, or take a more proactive approach that creates the conditions for more regional communities to thrive. The time has come for greater ambition.