CCIWA chief economist Aaron Morey says it has never been a more important time for government to get their policy settings right to help the nation recover from its first recession in three decades.
Speaking at CCIWA’s Levelling Up webinar today, Morey addressed some of the policy reforms governments could implement to help the State’s economy bounce back.
“Australia has entered its first recession in 29 years,” he said.
“It confirms economic predictions made by the Chamber of Commerce and Industry WA and underlines the need for significant economic reform to support business investment and job creation,” he says.
Morey explains that WA’s economy contracted 6 per cent in the June quarter, surpassing our worst-ever quarterly decline of 4.9 per cent in 1989.
“At the same time, Western Australia recorded 1.1 per cent growth in its domestic economy in 2019-20, the only state to grow last financial year and exactly as predicted by CCIWA in its Outlook report,” he adds.
Morey says even historic government support, which has helped shield jobs during the crisis, can only cushion the blow so much.
“WA businesses and households will be further battered by the eventual expiry of emergency Government fiscal support like JobKeeper and apprenticeship wages subsidies, but also State measures like temporary tenancy and lease agreements, energy payment suspensions and license waivers,” he says.
“This is the next front in the economic storm.”
CCIWA’s business and consumer surveys indicate that for 98 per cent of participants, a clear economic plan would improve their confidence.
“In particular, today’s result illustrates the urgency for National Cabinet to work towards creating a more competitive business environment by reducing or eliminating uncompetitive taxes,” Morey adds.
CCIWA’s Recovery Reform Roadmap offers concrete policy action to secure our revival, by keeping costs low, improving regulation, strengthening skills and infrastructure, and re-entering the global market.