Hon Mark McGowan BA LLB MLA

Hon Mark McGowan BA LLB MLA

Premier; Treasurer; Minister for Public Sector Management; Federal-State Relations

    WA’s domestic economy powers to strongest growth in a decade

    12/05/2022 2:05 PM
    • 2022-23 State Budget confirms the WA economy powers the nation
    • WA's economy grew by 7.2 per cent during the pandemic, the strongest in the nation
    • Treasury forecast WA's domestic economy expected to grow by four per cent in 2022 23
    • Employment is at a record high with 1.46 million Western Australians in jobs
    • WA Jobs Plan on track, with 160,000 jobs created since March 2017
    • Lowest unemployment rate in the country, expected to average 3.75 per cent in 2022 23

    The 2022-23 State Budget confirms the McGowan Labor Government's stable and responsible Budget management and safe handling of the pandemic has positioned Western Australia's economy and finances to be among the strongest in the world.


    The domestic economy grew by 7.2 per cent over the two years of the pandemic, the strongest in the nation, with more than two and a half times the growth of the rest of the country - among the best performing in the world.


    WA's economy has been supported by strong growth in consumer spending, as well as rebounding business investment and elevated levels of Government investment. 


    The uninterrupted operation of our resources sector throughout the COVID-19 pandemic, unlike our competitors, has allowed the sector to take advantage of elevated commodity prices, particularly iron ore, which underpinned WA's record value of commodity exports in 2021. 


    The value of WA's merchandise exports also reached a new high, accounting for more than half of the nation's merchandise exports. This has resulted in billions of additional dollars flowing eastward to support the rest of the country, particularly through company tax collections and the goods and services tax.


    WA's domestic economy is forecast to grow by 5.25 per cent in 2021-22, which would be the strongest growth in a decade, with solid growth expected over the next four years including four per cent growth in 2022-23. Gross State Product, which includes trade, is expected to increase by 3.75 per cent this year, the strongest growth since 2013-14.


    The strong WA economy has resulted in the employment of more Western Australians than ever before, with 1.46 million in jobs.


    Full-time and female employment are also at historic highs, and WA's participation rate reached a record high for all States at 69.8 per cent in the March quarter.


    Treasury forecast an additional 68,700 jobs to be added in 2021-22 and a further 28,900 in 2022 23.


    WA's unemployment rate is currently at 3.4 per cent, the lowest level in 13 years and lowest in the nation. The unemployment rate is projected to stay very low, averaging 3.75 per cent in 2022-23 and over the forward estimates. 


    The strong labour market is expected to see wages lift from an estimated two per cent in 2021 22 to 2.75 per cent in 2022-23.


    After more than five years of low inflation, Perth's consumer price index (CPI) has increased in 2021-22. Global supply chain constraints and geopolitical factors, particularly the Russian invasion of Ukraine, as well as the temporary closure of the east-west rail line, have contributed to the recent rise. 


    Treasury forecast that Perth's annual average CPI (excluding electricity) will increase by four per cent in 2021-22, before easing to 2.75 per cent forecast in 2022 23 as current supply chain pressures begin to ease.


    For more information, visit https://www.ourstatebudget.wa.gov.au


    Comments attributed to Premier and Treasurer Mark McGowan:


    "WA's stable and responsible Budget management continues because of our safe handling of the pandemic.


    "This has supported our nation-leading economic and financial position, and helped deliver another strong surplus.


    "This strong surplus will be used to set up our State's long-term future, including another record health and mental health investment, and help Western Australians with cost of living.


    "Our strong economic and financial performance is expected to continue, with Treasury forecasting four per cent growth in the domestic economy, following the strongest growth in a decade recorded this year.


    "Today's Budget confirms without a doubt that the WA economy has carried the nation through the COVID-19 pandemic, with record exports and strong activity, resulting in billions of support flowing eastward.


    "The strength of the WA economy is benefiting all Western Australians through strong jobs growth, the lowest unemployment rate since 2008 and record rates of labour market participation.


    "The jobs data shows that we are delivering on our WA Jobs Plan, with 160,000 jobs created since we came to office and the total number of Western Australians in jobs at a record 1.46 million."


    Premier and Treasurer's office - 6552 5000