WA’s domestic economy is officially on the mend, growing 0.9 per cent in September – the highest quarterly growth since June 2015.
Chamber of Commerce and Industry WA (CCI) Chief Economist Rick Newnham said the last time WA’s domestic economy grew faster than Australia’s was also June 2015.
“Although we still have a long way to go to reach the boom levels of 2012, this is positive news for WA’s economy, which has been struggling to transition from mining construction to production,” Mr Newnham said.
“The domestic economy most strongly reflects the economic environment that WA households experience – as the domestic economy grows it is good for jobs, business investment and household spending.
“This 0.9 per cent growth has been driven by increased spending in non-dwelling construction, plant and machinery, showing confidence has returned to WA businesses.”
This is supported by the latest WA Super–CCI Survey of Business Confidence which revealed that business confidence in WA has not only bounced back, it is the highest it has been in almost three years.
“Business confidence rebounded in the September quarter following a short stumble in recovery, with 47 per cent of businesses expecting the WA economy to improve or stay the same in the short term, up 13 per cent – the highest it has been in almost three years,” Mr Newnham said.
“Recovering global commodity prices have also played a significant role in business confidence, particularly in mining and LNG. The oil price reached a two-year high last month which, if sustained, will help drive a new wave of LNG investment in WA.
“Business investment creates jobs in WA – for business investment to grow WA businesses must feel confident that the investment climate will improve in the future.
“This includes no new taxes, fees or charges on business so they can continue to create new jobs and invest in WA.
“A stable investment regime in the mid-year economic review is vital in attracting business investment, which will see more new projects come on line, increased business growth, and more jobs created for workers.”