Western Australia’s economy is holding firm in the face of global uncertainty, continuing to grow as inflation cools, according to CCIWA’s latest Economic Outlook report.
The half-yearly report forecasts the WA economy to grow by 2.25% in the current financial year, before adding 2.5% in each of the following two years. 
CCIWA Chief Economist Aaron Morey, said the steady result reflected WA’s ongoing economic resilience.
ACCESS THE OUTLOOK REPORT HERE
“There is no doubt the US tariffs on China, our biggest trading partner, are weighing heavily, but it’s being offset by slowing inflation and successive interest rate cuts,” he said.
“While WA is well positioned to withstand global economic headwinds, it’s important to remember that we are not immune to the slowdown that has hit other economies.
“Declining labour productivity means economic growth is largely dependent on population growth and further investment.”
Unemployment stays steady, wages ease
The Outlook report forecasts:
- the unemployment rate in WA to remain relatively steady at 4.0%
- a 3.25% growth in wages for the current financial year
- business investment to pick up in the current financial year, growing by 2.75% in 2025-26
“The labour market is expected to continue easing over the next year which will put downward pressure on wages, which makes for a softer inflation outlook,” said Morey.
He said business investment will be driven by the ramping up of a number of major projects which will support growth over the coming years.
“Over the longer term, we expect the global push towards sovereign manufacturing and decarbonisation to support growth in the WA economy, as we further develop critical minerals capabilities and new projects in the LNG sector – a key fuel in the energy transition,” he said.
CCIWA’s Economic reports, including Outlook, are available exclusively to CCIWA Complete, Advantage and Corporate Members. For more see CCIWA’s Economic Insight page.
