25 reasons to be confident about growth
Deloitte analyses Australia’s sectoral growth optionsDOWNLOAD
24 March 2014: New research from professional services firm Deloitte has identified 25 sectoral hotspots with the biggest potential to lift Australia’s growth trajectory over the next 20 years.
The full release of Positioning for Prosperity? Catching the next wave, the third in Deloitte’s Building the Lucky Country series, analyses growth prospects across all major parts of Australia’s economy. The report highlights Australia’s:
Collectively, these sectors, the ‘Deloitte Growth 25’ (DG25), represent a group of compelling growth opportunities for Australia over the next 20 years.
Co-author of Positioning for Prosperity? Deloitte Access Economics’ Chris Richardson, said: “The DG25 reflects our analysis of those sectoral hotspots with the greatest potential to contribute to Australia’s prosperity.
“As Asia’s boom evolves and new domestic opportunities arise, our research shows that Australia’s growth options remain excellent. Our future prosperity will come from a more diversified spread of sectors, enabling Australia to remain the fastest-growing developed Western nation in the world in the coming decade.”
The report said five big-picture advantages gave Australia a head-start: world-class resources in land, minerals and energy; proximity to the world’s fastest-growing markets in Asia; our use of English, the world’s business language; a temperate climate; and well-understood tax and regulatory regimes.
Building the Lucky Country series co-author and global thinker on growth strategy, Mehrdad Baghai, Managing Director of Alchemy Growth Partners, said: “The commitment by the G20 to table national growth strategies in November comes at a great time. It will be a trigger for Australia to have a national conversation about where we need to look for our future prosperity.”
The initial findings from Deloitte’s Positioning for Prosperity report of 8 October 2013 saw great prospects in the ‘Fantastic Five’ sectors of gas, agribusiness, tourism, international education and wealth management, as well as Australia’s potential to extend its run of success in mining.
Yet these sectors only cover a fifth of the economy, and in the full report Deloitte has now extended its analysis to focus on Australia’s potential to tap both global and local growth in areas that are among the other 80% of the economy.
Many of the domestic growth opportunities that Deloitte identifies result from the collision of health costs and ageing. That includes obvious candidates (Residential aged care, Retirement living and leisure, Community and personal care, and Preventative health and wellness), but also the Digital delivery of health (this nation already delivers health care to remote Australia well – think of the Royal Flying Doctor Service – but new manufacturing technologies will combine with new markets to generate new potential for digital delivery more generally).
Yet there are other domestic opportunities too, including:
The report also identifies downstream opportunities for services and products that support mining and the Fantastic Five, including:
A final group of growth pockets are those with the potential to play on the global stage. They share a common characteristic: because Australia is a small player in a big world, these sectors can turbocharge their development by selling into world markets:
Deloitte Chief Strategy Officer and Building the Lucky Country series co-author, Gerhard Vorster, noted that: “Collectively, the DG25 provides a vision of where Australia’s future growth can come from. There are big challenges for both businesses and governments to make the most of the potential on offer.
“Despite the challenges, Australians shouldn’t lose sight of the fact that these opportunities – and their potential payoff – are huge, if we embrace diversified growth and adopt an innovative mindset.”
Positioning for Prosperity? Catching the next wave is the third edition of Deloitte’s Building the Lucky Country series, which focuses on business imperatives for a prosperous Australia. A draft version of the full report was debated by a group of leading business and political leaders in February 2014 and the final report reflects their feedback.
Figure 1 - Projected annual growth rates of the DG25
Copies of Positioning for Prosperity? Catching the next wave are available on request.
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