Treasurer Eric Ripper today welcomed a new independent report forecasting Western Australia's V8 economy to zoom along at almost twice the national rate in 2005-06.
The report by leading forecaster Econtech says economic growth of 4.7 per cent will be underpinned by strong business investment. Nationally, they forecast the economy to grow at a lower 2.4 per cent.
In the longer term, Econtech predicts WA's economy to grow at 5.3 per cent in 2006-07 rising to seven per cent in 2007-08.
"Strong GSP growth in WA means that job growth in WA will be strong over the coming years and the unemployment rate will be below the national average," the report stated.
Mr Ripper said the report was an endorsement of the Gallop Government's record of strong economic management.
The Government was building a strong economy by:
- maintaining a highly competitive tax regime as a percentage of GSP;
- spending a record $15.8billion on capital works over four years;
- fast-tracking WA's system of approving major resource projects, with a further $25million recently announced by the Premier;
- making WA an attractive place to invest by maintaining the State's AAA credit rating; and
- tackling skills shortages by delivering 4,000 new apprenticeships and traineeships since February.
However, he warned the Howard Government's continued neglect of WA's infrastructure needs was a threat to longer term growth.
"If WA is to continue punching above its weight in the export arena, then it needs adequate infrastructure funding from the Commonwealth," the Treasurer said.
"For example, WA boasts 22 per cent of the national road network, but receives just 7.4 per cent of national road funding.
"The Gallop Government will always put WA first.
"That is why we are investing record levels of funding in infrastructure - $4.7billion in capital works in 2005-06.
"With every Western Australian subsidising the rest of the nation to the tune of $1,500 a year, it is time for WA to get back its fair share."
