WESTERN Australia is on the threshold of another boom, with the Chamber of Commerce and Industry WA this week revising up its growth forecasts for the local economy.
In its quarterly outlook for the state, CCIWA expects the local economy to grow by 1.5 per cent in 2009-10, up from the previous forecast of 0.25 per cent.
In 2010-11, WA’s economy is projected to grow 4.25 per cent, then 5 per cent in the following financial year and then a further 6 per cent in 2012-13.
The better than expected forecast for economic growth reflects CCIWA’s upward revision to both household consumption and dwelling investment, in line with the resilient local jobs market and continued strong population growth.
CCIWA tips household consumption to rise by 3 per cent this financial year, up from the previous forecast of 1.5 per cent, boosted by the strength of the labour market with the jobless rate peaking at 5.7 per cent in September, nine months earlier than expected.
The chamber is now expecting the unemployment rate to average 5 per cent in 2009-10, compared to the previous 5.75 per cent forecast, and will progressively decline to 4 per cent in 2012-13.
With more than $200 billion worth of major project investments in the pipeline for WA, CCIWA anticipates business investments to fall by 5.25 per cent this financial year.
