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Australian Regional Capacity Index – October 2019

Australian Regional Capacity Index – October 2019

This 2019 KPMG Economics report – an update of a 2015 paper – examines the comparative resilience of Australia’s states and territories to deal with economic, social and community shocks.

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Brendan Rynne

Partner, Chief Economist

KPMG Australia

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Resilience – Ferns growing out of cracked lava

KPMG’s ‘Australian Regional Capacity Index’ (ARCI) compares the states and territories by 12 indicators, grouped in three categories – economic, socio-demographic and ‘community connectivity’.

The ARCI attempts to show the relative regional resilience for each state and territory in Australia, and implicitly each region’s capacity for adaption and adaptability.

ACT retains its place from 2015 at the top of the rankings due to its strong social and community factors. Victoria ranks as Australia’s second most resilient jurisdiction, because of its strong economic capacity. NSW ranks third, marginally ahead of QLD and WA.

The 2019 report also shows a close correlation between resilience and growth, with ACT, Victoria and NSW’s growth rates from 2014-2018 mirroring their top three resilience rankings.

Read the full report.

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