WA’s domestic economy is expected to rebound to 0.7 per cent growth this year, or 2.7 per cent including its record exports, despite COVID-19 eliminating a decade of growth in 2020.
CCIWA’s biannual Outlook report has revealed the State’s economy has been sheltered from harm by extraordinary global commodity prices, $17 billion in Federal Government support and looser restrictions within WA.
WA’s domestic economy is bouncing back, despite COVID-19 wiping out a decade of growth.
CCIWA Chief Economist Aaron Morey said the expected growth figures would leave WA’s economy smaller than levels anticipated pre-pandemic, but in an enviable position compared with other economies.
He said China’s reliance on WA for iron ore, and a big pipeline of housing and infrastructure construction would support the economy during 2021.
“With WA households saving more, and paying off more of the mortgage, we are well-positioned to withstand challenges ahead as JobKeeper and other support programs expire,” he said.
“At the same time, WA businesses are impacted by ongoing border restrictions, and have carried the cost of WA’s recent snap lockdown.
Contributions to gross State product in WA during 2020.
Morey added that the plight of the businesses bearing the brunt of the loss during the recent lockdown does not show up in economic figures so dominated by mining, which makes up 43 per cent of WA’s economy.
“It would be a mistake for WA to complacently ride the back of our mining sector,” he said.
To be ready for changing global conditions, CCIWA urges the State Government and Opposition to pursue reforms to strengthen and diversify our economy and create jobs.
“This includes key CCIWA recommendations to reduce WA’s payroll tax, help parents return to the workforce, and ease restrictions on shops and shopping.”
Read the full report and our media release.
