Sydney is the financial and economic heart of Australia, with a substantial impact on the nation’s economy, contributing nearly a quarter of the country’s total GDP. Ranked among the top ten global cities for economic integration, Sydney holds the eleventh position on the Global Economic Power Index and is recognized as a leading financial hub in the Asia-Pacific region. The city is home to numerous multinational corporations and foreign banks, reinforcing its status as Australia's financial capital.

Historically, Sydney's economy faced challenges in its colonial days due to land cultivation issues and an unstable monetary system. However, significant changes occurred in the 1840s, leading to a capitalist economy spurred by free settlers and thriving maritime and wool industries. The late 1800s saw the emergence of wheat and gold as key export sectors, while the 20th century marked the establishment of a robust manufacturing base, which was pivotal during the Great Depression.

As of 2015, Sydney’s nominal gross domestic product reached AU$400.9 billion, translating to approximately AU$80,000 per capita. The financial and insurance services sector alone contributed 18.1% to this economic output, followed by professional services and manufacturing. Sydney is also characterized by a thriving business environment, with over 451,000 businesses, including a significant presence of Australia’s top companies and multinational regional headquarters.

Despite its economic strengths, Sydney grapples with housing affordability. In 2023, it was ranked as the least affordable city in Australia and the second least affordable in the world, following Hong Kong. The average house price soared to A$1.59 million, while units averaged A$795,000. This rising cost of living is exacerbated by a perceived housing crisis, with media reports frequently highlighting the city’s ongoing challenges in providing affordable housing options for its residents.

In summary, Sydney remains a global economic powerhouse with a diverse and dynamic economy, but its rising housing costs are a pressing issue that requires attention and strategic solutions.