The $36.9 billion region in New South Wales, which produces 40% of the state’s coal resources, is forecast to continue to boost incomes and living standards on Australia’s east coast by harnessing the demand from Asia for resources and services.

The report took into account the longer-term influences likely to shape the Hunter economy over the next two decades, building on its strong foundations of mining, agriculture and services.

The report’s author, Deloitte Access Economics partner Dr Ric Simes, said the Hunter Region reflected Australia’s national economy.

“With its significant exposure to resources, agriculture, energy production and defence, with service industries such as education, health and tourism, the prospects and challenges for the Hunter parallel those confronting the nation as a whole,” he said.

The report considered the Hunter region’s use and development of infrastructure, its current and future industries and their economic contribution to the Australian economy.

It also looked at future needs in education, skills, workplace development, and innovation, as well as the need to enrich the environment and continue to create liveable places that attract and retain a growing population.

“The major influences facing the Hunter region and Australia as whole over the next 20 years include integration with Asia, changing settlement patterns, transitioning to a less carbon intensive economy, and the digitising economy,” Simes said.

The Hunter region contributed $36.9 billion to the national economy, making it Australia’s largest regional economy. It contributed more than 8% of Gross State Product and 2.6% of GDP.

It produces 80% of the state’s electricity and employs 7.2% of the regional workforce in coal mining.

The mining sector is expected to expand over the next 20 years, underpinned by additional coal production and the emerging coal seam gas sector. The mining sector is also projected to contribute around 24.2% of total regional output in 2036, representing an increase of almost 2% from 2012.

The influence of the mining sector extends to other allied industries, such as the construction, transport and wholesale trade industries which currently constitute around 15% of the economy and employ around 37,400 workers.