19/11/2021 - 15:43

Buying power booming from resources riches

19/11/2021 - 15:43

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High iron ore prices meant the average Western Australian’s purchasing power skyrocketed by 17 per cent in the year to June, although the state is more reliant on mining than ever.

Buying power booming from resources riches
Perth city and the Swan River. Photo: Matt Mckenzie

High iron ore prices meant the average Western Australian’s purchasing power skyrocketed by 17 per cent in the year to June, although the state is more reliant on mining than ever.

Gross state product grew 2.6 per cent in WA during the 2021 financial year, according to the Australian Bureau of Statistics.

That compared to 1.5 per cent growth on average across the country.

South Australian growth was 3.9 per cent, and Tasmania 3.8 per cent.

WA produced $361 billion of goods and services in the year.

But real gross state income per capita, which represents purchasing power, grew dramatically in the west, up 17 per cent in the financial year.

That measure includes the impact of price changes for exports and imports.

The high growth in WA reflected the high iron ore price and dominance of iron ore exports in the economy.

The share of mining in the state’s economy reached a record high, at 46.5 per cent of state product, about double the 2016 financial year.

Mining industry income was $168 billion.

“No other state relies on one sector so much,” Chamber of Commerce and Industry chief economist Aaron Morey said today. 

“Nationally, the next highest share of a state economy by one industry is the health and community services sector in Tasmania, at 12 per cent. 

“After mining, WA’s next-biggest sector is construction, making up 5 per cent of our economy in 2020-21.

“These results reinforce the calls from CCIWA for a host of economic reforms to drive the diversification of the WA economy. 

“Importantly, diversification can occur alongside a strengthened mining sector.”

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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