SHARE and money markets are causing widespread gloom in Australia's financial capitals, but the booms in mining and soft commodities are still powerfully driving regional economies.
The Australian reports that a third of the nation's population lives in rural areas and regional centres, and the economic strength of the sector has been overlooked in recent times, according to Colliers International national research director Rory McLeod.
Flagging sentiment in NSW and Victoria -- where Australia's financial services sector is based -- have cast a bearish mood across the national economy, but Western Australia, Queensland and South Australia are creating opportunities and drawing new investment.
"Many of our regional centres are quite robust," Mr McLeod told a recent series of Colliers seminars, titled Beyond the CBDs.
"Most have a fairly diverse economic base and represent safe, solid, secure and attractive investment opportunities."
Mr McLeod said the hard and soft commodity booms were having an impact, and the benefits were felt first in rural and regional Australia, before they flowed through to metropolitan markets, The Australian reports.
Hard commodities refers to mining and resources, and soft commodities describes grains, corn, soybeans and food products.
"The boom delivered first-round benefits in economic, employment and population growth, as well as second-round benefits as a result of the Government investing in infrastructure such as hospitals, airports, dams and ports, which benefit local communities," Mr McLeod said.
Rabobank rural specialist Lachlan Douglas told the seminar agribusiness investment was coming from areas not seen in the past.
The Stanbroke station sell-off in 2003 had triggered a large number of cattle property sales in the following years, he said, but cropping was currently the "outstanding" sector.
