The Chamber of Commerce and Industry Western Australia has upgraded its growth projections for the state following a stronger than expected finish to last financial year.
The Chamber of Commerce and Industry Western Australia has upgraded its growth projections for the state following a stronger than expected finish to last financial year.
CCI has released its quarterly snapshot of the local, national and international economies which delivers good news for WA's future, tipping the local economy to " fire on all cyclinders."
The state's peak business organisation revised up its economic growth forecast from 3 per cent to 3.5 per cent in 2009-10.
CCI chief economist, John Nicolaou said the new financial year had started with a bang.
"As the economy continues to power up, economic growth this financial year will increase by a further 4.5 per cent with all sectors to play an important role," he said in a statement.
"As a result, the economy will be stronger, and continue to rise steadily over the next few years, with growth reaching 6¼ per cent in 2012-13.
"This financial year, economic growth will be built upon increased business investment and rising levels of household spending. A rise of 4 per cent in household consumption in 2010-11 will be triggered by strong population growth as people flock to WA to take advantage of the opportunities.
"That will be good news for consumer driven sectors of the economy, such as retail and hospitality, which are currently struggling due to rising costs, particularly wages which will increase considerably under the new awards system."
Mr Nicolaou said exports were also predicted to be a main driver of growth, rising by 9.5 per cent over the next two years, and a further 10 per cent in 2012-13.
But some short-term risks have emerged for WA.
"There's growing concern that the recovery in the global economy will not be as strong as first expected as a result of the economic uncertainty in Greece and other European countries," he said.
"And locally, higher interest rates and the rising costs for businesses and households have also shaken business and consumer confidence in the June quarter, which may also act as a handbrake to growth over the coming months.
"Despite these risks, the long term outlook for the WA economy remains positive."
Full announcement below:
12 July 2010
New financial year heralds wave of growth for WA
The new financial year has started with a bang for Western Australia with the economy tipped to fire on all cyclinders.
The State's peak business organisation, CCI, today released its quarterly snapshot of the local, national and international economies which delivers good news for WA's future.
The last financial year finished on a high with stronger than expected growth. This has prompted CCI to revise up its economic growth forecast from 3 per cent to 3.5 per cent in 2009-10.
As the economy continues to power up, economic growth this financial year will increase by a further 4.5 per cent with all sectors to play an important role. As a result, the economy will be stronger, and continue to rise steadily over the next few years, with growth reaching 6¼ per cent in 2012-13.
This financial year, economic growth will be built upon increased business investment and rising levels of household spending. A rise of 4 per cent in household consumption in 2010-11 will be triggered by strong population growth as people flock to WA to take advantage of the opportunities.
That will be good news for consumer driven sectors of the economy, such as retail and hospitality, which are currently struggling due to rising costs, particularly wages which will increase considerably under the new awards system.
Exports are also predicted to be a main driver of growth, rising by 9.5 per cent over the next two years, and a further 10 per cent in 2012-13.
Despite the positive outlook, some short-term risks have emerged for WA. There's growing concern that the recovery in the global economy will not be as strong as first expected as a result of the economic uncertainty in Greece and other European countries.
And locally, higher interest rates and the rising costs for businesses and households have also shaken business and consumer confidence in the June quarter, which may also act as a handbrake to growth over the coming months.
Despite these risks, the long term outlook for the WA economy remains positive.
