WA economy remains strong

New figures show Western Australia’s economy continues to go from strength to strength.

The Commsec ‘State of the States’ report found WA is now the strongest performing state in the country. The report found the state’s overall economic growth has been supported by strong retail spending and commercial and engineering construction. The report says the state continues to benefit from the strength in mining and engineering.

Low unemployment boosted the retail sector with spending 19 percent above the decade’s average level. WA also experienced the strongest growth in retail spending in the nation up by 2.8 percent. The state’s population continued to grow faster than any other state, up 2.09 per cent in the last quarter.

The Treasurer Christian Porter has welcomed the news.  

“Our economy grew by 6.8 percent through the year to March 2011, with an increase in business investment its main driver,” he said.

“The state’s unemployment rate was 4.2 percent in June, well below the national average of 4.9 percent, and the lowest of all states.”

Meanwhile the WA branch of the Chamber of Commerce and Industry has revised up its economic growth forecasts for the current financial year. The local economy is now tipped to grow by 6.25 percent this financial year and 7 percent in the 2012/2013 year.

The Chamber’s Chief Economist John Nicolaou says the state’s long term economic outlook remains bright.

"I very much believe that Western Australia will be the fastest growing state for many years to come," he said.

He says strong growth in the mining sector combined with low unemployment has put Western Australia on course for continued economic prosperity.

“Economic activity in Western Australia lifted in March due to increased business investment. A record A$12.7 billion was invested by WA firms during March, largely on the back of continued strong growth in the State’s resources sector,” he said.