The organisation’s biannual Outlook report, released today (August 23), shows WA has bounced back from COVID and is positioned to continue expanding into the next financial year.
When COVID first hit, about $3.1 billion and close to 100,000 jobs were wiped from the WA economy.
Since then, the economy has recovered to a predicted 3.5 per cent growth rate in 2021-22, which if achieved would be the fastest growth rate in the domestic economy since 2012-13.
Importantly, the size of the State’s economy has not only surpassed pre-pandemic levels but is now higher than the State Government forecasted it would be before COVID hit.
CCIWA Chief Economist Aaron Morey said commodity prices were a driving force of the growth, with iron ore royalties adding $1.2 billion to WA’s books.
In addition, record low interest rates and generous housing grants have sparked a dramatic turnaround in dwelling investment, from a -13.2 per cent fall in 2019/20 to an expected 21.2 per cent expansion in 2021-22.
“The success of the WA Government in containing COVID-19 has also enabled historic Federal stimulus to flow freely through our economy, bolstering household consumption growth to an expected 2.5 per cent,” Morey said.
However, these factors do not assure WA’s continued success, with skills shortages affecting four out of five businesses and amplified by closed borders.
Morey said once 80 per cent of the WA population is vaccinated, it would pave the way for the safe re-opening of our economy.
He said reduced payroll tax burdens, better marketing of WA’s investment opportunities and unlocking the full potential of working parents by adopting a funding follows-the-child funding approach to kindergarten would help WA business thrive.
Read our media release here.
A full version of the report is available from CCIWA’s Economic Insights page.