Planning Assumptions

The International Monetary Fund (IMF) estimates that the global economy shrunk by 4.4% in 2020 due to the impacts of COVID-19. This decline is the worst since the Great Depression of the 1930s. Australia’s Gross Regional Product (GRP) shrunk 5%, and while the full impacts to Wagga Wagga’s economy may not be known for years, early estimates indicate a 2% decline in GRP.

Even with the most difficult economic conditions in recent memory impacting every industry, Wagga Wagga’s diverse economy has adjusted very well. Drought breaking rain has come at the most opportune time leading to record crops for the region’s agricultural producers, the healthcare sector adjusting as they prepared for and responded to COVID-19, new domestic opportunities presented to manufacturers as quarantine restricted exports, and large education institutions saw a complete shift to online learning. Although some industries were able to make adjustments, other service-related businesses saw a sharp decline in business. Tourism, accommodation, retail, arts/cultural activities, and dining services were the hardest hit. These sectors saw the most Job Keeper applications and the largest reduction in revenue. The NSW Government has recently responded in order to help with their recovery releasing a program to support people venturing out of their home called Dine & Discover. Approximately $5 million is available to Wagga Wagga residents through this program to spend on eating out or enjoying activities such as bowling, kayaking rental, or historic tours.

Wagga Wagga City Council was also very active in its response to the COVID-19 pandemic. A COVID-19 Relief package was introduced to the community within weeks of the economic impacts hitting our region. Councillors unanimously approved a package of support, including: a) increasing the Small Business category funding of Council’s Annual

Grants Program b) reducing seasonal user fees for sporting groups using Council’s sporting grounds c) providing rent and licence fee concessions for eligible community, sporting and cultural not for profit groups d) implementing the National Cabinet Mandatory Code of Conduct – SME

Commercial Leasing during COVID-19 e) modifying the developer contributions plan to defer or waive fees f) waiving interest for payment plans entered into by ratepayers When the magnitude of COVID-19 became evident, Council began mobilising volunteers from our organisation to support community groups such as Meals on Wheels and established the Business Roundtable group to support our business community. The Business Roundtable group was represented by Wagga’s business leaders including: Dr Joe McGirr, Wagga Wagga City Council, Business Chamber, Women in Business, BEC Business Advice, Eastern Riverina Arts, Charles Sturt University, Committee for Wagga, Regional Development Australia Riverina, TAFE NSW, and Bridge Hub. This group provided valuable two-way communication between government and the business community and established the Live local Be local campaign. This campaign placed a focus on Wagga’s CBD as we worked to get people out of their homes and reconnecting with their broader community. This campaign continues to run and will be leveraged for future community engagement. As our city thrives, over the past 12 months, Wagga Wagga has seen an increase in enquiries for residential, commercial, and industrial real estate. These investors were looking to regional NSW, and Wagga in particular, as they diversify their portfolios, or escape the crowded major cities. No longer bound to an office building in a major city CBD, lifestyle preferences have seen workers leave metro areas driving a housing prices boom in regional Australia. A December 2020 Domain property report noted Wagga’s median house price at $405,000 – an increase of over 20% during the past 5 years. In addition to private investment, Council and the State Government are also investing heavily in the region to facilitate growth and support the community to live a happy and healthy lifestyle. The Wagga Special Activation Precinct is a 4000+ hectare industrial development, with a rail terminal managed by Visy Logistics, located on the Inland Rail route allowing direct access to NSW, VIC and QLD ports. Other investment includes the NSW Health & Knowledge Precinct which is anchored by the newly upgraded public hospital (Wagga Base Hospital) and Calvary Private

hospital. Council’s levee upgrade, 50+ kilometres of active travel pathways, Pomingalarna Multi-Sport facility, and Riverside redevelopment are also underway and looking to be completed in 2021/22. If Wagga Wagga’s economy took a backward step in 2020, we’ve well and truly made ground in the last few months to leave us with a very promising forecast for growth and development in 2021.