WA economy shows strong growth

Results published in Commsec’s latest Economic Insights report showed WA’s economy grew by 3.2 per cent in the March quarter the biggest quarterly increase in State final demand in almost four years.

Treasurer Christian Porter commented “Our economy grew by 6.8 per cent through the year to March 2011, with an increase in business investment its main driver,”

Adding “The State’s unemployment rate was 4.2 per cent in June, well below the national average of 4.9 per cent, and the lowest of all States.”

The report demonstrated that Western Australia continued to benefit from the strength of mining and engineering sectors which drive commercial construction, exports and overall economic growth.

“The assessment is consistent with other commentators and the WA Chamber of Commerce and Industry has revised its own forecast of the State’s 2010-11 economic growth from five per cent to 6.25 per cent,” the Treasurer said.

“However, while the recent analysis confirms the Government’s strong economic management, there is no room for complacency as conditions across industries are mixed and uneven and the strength of the WA economy is under threat from proposed new Federal Government taxes.

“The proposed Mineral Rent Resource Tax and Carbon Tax have added uncertainty to many of the State’s industries already challenged by the rising Australian dollar and the growing risks in a volatile global economy.”

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