During the late 1990s there was a small-scale boom in New South Wales (partly generated by the preparations for the Sydney 2000 Olympic Games). Following the Games there was a minor slump: exacerbated by the housing boom which had developed during the late 1990s. In 2004-05 growth in Gross State Product (GSP) declined to 1.8%. This background paper attempts not only to highlight the key economic indicators for New South Wales but also to highlight some of the long-range developments which have affected production in the state.