Western Australia's economy is performing much higher than expected, according to a new report.
19 April 2010
Western Australian economy growing faster than expected
Western Australia is experiencing economic growth at a faster pace than first predicted, with growth expected to rise steadily to reach 6.25 per cent in 2012-13, the Chamber of Commerce and Industry announced.
The Chamber of Commerce and Industry, the state’s peak organisation representing local business, released its quarterly snapshot of the local, national and international economies which provides which shows the state is leading the Australian economy.
Local businesses are now leading Western Australia into the next wave of prosperity with business investment improving in the final quarter of 2009 as firms now look to expand their operations.
Households are also aiding the economy; with consumers now increase discretionary spending on items such as meals, entertainment and cars.
Strong population growth, caused in part by an increase in Australian immigration, is also expected to provide a boost to the housing sector.
The chamber now expects the Western Australian economy will grow by three per cent this financial year reaching 6.25 per cent in 2012-13.
The unemployment rate in the state is also heading downwards, after peaking at 5.7 per cent in September 2009 it is likely to fall back to three per cent by the end of 2012-13.
The renewed demand for workers will see the return of severe labour shortages and upward pressure on wages with businesses already reporting difficulties in attracting the extra workers they need, The Western Australian Business News has reported.