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Who dares wins in race to rebuild on world stage

Western Australia has reopened to the world, but is now facing the serious task of competing on the global stage, according to CCIWA’s latest biannual economic Outlook report.

Released today, the report shows the WA domestic economy is set for 3.75 per cent growth in 2021-22, well ahead of pre-pandemic levels.

Record government stimulus is still working through the economy, with household consumption expected to hit 2.75 per cent, and dwelling investment lifting to 10 per cent.

Strong commodity prices and upcoming projects like Scarborough and Pluto 2 will see business investment accelerate from 2 per cent this year, to an expected 7.5 per cent in 2022-23.

“With the State Government’s management of COVID-19, mining and consumer activity has continued comparatively freely, enabling the benefits to flow through the economy,” said CCIWA Chief Economic Aaron Morey.

However, Morey warned that Omicron may bring the toughest phase of the pandemic for many businesses, combined with the prospect of interest rate rises dragging on confidence and spending.

“Businesses face delays and rising cost pressures including for energy, and we must prepare for commodity markets to one day turn. Mining has reached a record 47 per cent share of WA’s economy, an over-reliance which demands significant refocus on diversification,” he said.

To this end, the report said WA needed boldness and daring vision.

“Only businesses and governments with the nerve to take on global markets, embrace skilled migrants and seize new trade and investment opportunities will prosper in a post-COVID world,” said Morey.

The report, the only WA-based non-government forecast of our economy, recommends:

  • reform the inefficient taxes constraining our dynamism and diversification, like payroll tax and stamp duty;
  • greater workforce participation by reducing disincentives to working parents, particularly mothers; and
  • investing in rebuilding WA’s reputation as a welcoming place to study, travel, invest and do business.

Read the full report; Outlook – Who Dares Wins

For general employee advice and guidance, contact CCIWA’s Employee Relations Advice Centre on (08) 9365 7660 or email [email protected].

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