Construction workers build scaffolding at the site of a new apartment tower in Sydney
Construction workers build scaffolding at the site of a new apartment tower in Sydney November 30, 2012. Reuters/Tim Wimborne

The Sydney siege did not deter Australia's economy from bouncing back as Sydney was named as the biggest contributor to overall growth. Sydney is leading an east coast economic boom while mining states continue to lag.

According to SGS Economics & Planning, Australia's largest city has contributed 38 percent of the total economic growth for the year up to June. Sydney's contribution in 2014 was up from an average of 22 percent in the past 24 years. The report also said Australian companies like Dick Smith Holdings have high sales of electrical goods, garden supplies and homewares in New South Wales last October. The surge in sales was the highest it has been in 14 years.

However, Reserve Bank of Australia Governor Glenn Stevens is worried about record-low interest rates which were designed to rebalance growth but were deemed too low for Sydney since housing prices have increased. The current interest rates have become too high for the rest of Australia due to declining mining investments. Bloomberg said new job opportunities have failed to keep up with the population growth.

JP Morgan Chase chief economist Stephen Walters said Sydney has become the core of residential investment that has driven house prices up and provided a "wealth effect." Outside of Sydney, households are struggling with a declining income, benefit cuts and tax increases.

SGS economist Terry Rawnsley said Sydney serves as the major financial hub of the country and provides access to capital flows from around the world. The strong growth in the city's biggest industry combined with low interest rates have helped support overall economic growth.

Meanwhile, Boxing Day, Australia's biggest holiday shopping event, is just a few days away and stores are preparing for the onslaught of shoppers who are expected to spend at least $16.1 billion throughout Jan. 15, the New Daily reported. Victoria's Chadstone, the country's biggest shopping centre will open its doors to shoppers by 7am on Boxing Day with 500 shops offering great discounts as much as 70 percent.