WA in ‘eye of economic storm’

CCIWA’s Chief Economist Aaron Morey warns that WA is in the eye of an economic storm, according to forecasts in the biannual Outlook report.

Morey says WA may see unemployment rise to as much as 11 per cent as JobKeeper and other stimulus measures are withdrawn.

He says deepening unemployment is likely to exacerbate falling consumption, falling business investment, weak confidence and population growth.

“This is a unique economic situation,” he says.

“The pandemic has pulled the handbrake on the domestic economy, dragging it from 1.1 per cent growth in 2019-20 to a forecast contraction of -1.9 per cent in 2020-21,” he said.

Outlook; Eye of the Storm – August 2020

“Western Australians are likely to face more than a year of uncertainty and low appetite for spending, with fewer hours being worked and more people out of jobs,” he said.

He says unemployment may remain at 9 per cent into 2021-22.

“The agility of WA businesses has helped keep our State afloat, with 85 per cent changing or adapting their operations, and one third taking on extra credit to cover overheads and pay wages — bailing out water in effect,” he said.

Read the full report, Outlook; Eye of the Storm – August 2020 here.

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