10/09/2009 - 09:55

WA economy to grow in 2010: CCIWA index

10/09/2009 - 09:55

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A lift in business confidence has driven expectations that Western Australia's economy will strengthen early next year, an inaugural index by the Chamber of Commerce and Industry shows.

A lift in business confidence has driven expectations that Western Australia's economy will strengthen early next year, an inaugural index by the Chamber of Commerce and Industry shows.

In partnership with Genesys Wealth Advisors, an analysis of seven economic variables, including business confidence and the All Ordinaries index, found economic activity in WA rose by 2.7 per cent in June, the fourth consecutive monthly increase.

"While 2009 has been a difficult year for many businesses across the State, the index gives hope that the worst of the global financial crisis may soon be over," CCIWA chief economist John Nicolaou said

"There are encouraging signs that 2010 will be a return to growth for the WA economy."

The survey found business confidence was the major drive of growth in June, with one-year expectations for the WA economy rebounding from a record low in the March quarter.

The All Ordinaries index was also a major driver, rising 3.5 per cent in June, Genesys said.

However, the sharp fall in the benchmark index between December 2007 and February 2009 suggests economic conditions may still deteriorate over the rest of this year.

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