WA maintains AAA credit rating with strong economic growth continuing

Graph from a presenation by Warren Hogan, Chief Economist of ANZ Bank, London 2011.

With AUD$170 billion of projects in the pipeline over the next five years international credit ratings agency Moody's Investor Services (Moody’s) re-affirmed the Western Australian (WA) Government's triple-A credit rating in February, stating the outlook for the rating was stable.

Moody’s assessed the State Government as having “ample budget flexibility”, “a diverse export and natural resource-based economy” and “manageable, albeit rising debt burden”.

WA has also enhanced its international standing as a destination of choice for investment in the mining industry in the Fraser Institute survey. The 2010-11 survey ranked WA up two places from last year to 17 out of 79 jurisdictions. Mines and Petroleum Minister Norman Moore said the results were very pleasing.

“State Government initiatives such as the AUD$80million Exploration Incentive Scheme, funded by the Royalties for Regions program, play an important role in demonstrating the potential for discovery of a wide range of mineral commodities that continue to attract investment in WA exploration,” Mr Moore said.

This news was buoyed by positive predictions for the WA economy including an increase in export earnings exceeding AUD$100 billion making it 44.2 per cent of the National total; this in a year when Australia enjoyed a 14 per cent increase export earnings overall.

WA enjoyed an annualised economic growth rate of 5.5 per cent over the last five years to 2007-08 only slowing in the last two years due to implications from the Global Financial Crisis. But now Minter Ellison, Australia’s largest law firm and ACIL Tasman, a leading economic consultancy have said the WA economy is poised for strong renewed growth.

All this is very good news in the lead-up to the Commonwealth Heads of Government Meeting (CHOGM) in October when the world’s spotlight will be focused on WA.

“With leaders from more than 50 nations visiting Perth, including some of our major trading partners, it is important we offer them a truly memorable meeting experience,” the Premier Colin Barnett said.

“We have found a strong and continuing interest from Europe in Western Australia’s continuing strong economic growth which means it is the right time and there is the right opportunity to invest in the State both for its own sake and as a springboard to Asia’’ said Agent General Kerry Sanderson AO.