State's economic outlook strong
Western Australia’s economic outlook remains bright, as the economy continues to grow bolstered by hundreds of billions of dollars of resource projects underway or in the planning stages. New figures from the Department for State Development show the economy grew 4.3 per cent in 2009-2010, driven by increased mining activity and exports growth.
Exports grew by a massive 34 per cent in 2010 -2011 mainly driven by increases to China and Japan. Western Australia now accounts for 45 per cent of Australian exports (see graph).
There are currently A$107 billion in advanced resource projects in Western Australia and another A$194 billion that are planned or possible. Of that, A$65 billion are advanced oil and gas projects and A$118 are planned or possible oil and gas projects. Australia is expected to be second in the world only to Qatar in terms of Liquefied Natural Gas exports by 2020. The unemployment rate also decreased to 4.0 per cent.
Meanwhile, a recently released Deloitte Access Economics’ report described WA as the ‘heavyweight champion of the Australian landscape’. The Treasurer Christian Porter said it’s no surprise WA’s economy continues to expand, with projects such as the $43billion Gorgon LNG Project and BHP Billiton’s $9.9billion Rapid Growth iron ore projects earmarked as the key to success.
He said with billions of dollars projects in the planning stages the economic outlook is strong for the long term. “It is pleasing to see the strength and even greater potential of our State being recognised and the report proves we are getting the job done in terms of building the necessary infrastructure for growth,” he said.
Furthermore, economic growth has proved to be sustainable, and the Western Australian economy grew at 5 per cent per year on average over the last nine years. In 2009-2010 Western Australia accounted for 14.4 per cent of the Australian economy, well above its population share of 10.3 per cent. In 2010 the state’s population grew by 2.1 per cent, driven largely by people moving to the state from other parts of Australia, or emigrating to take part in the strong economy. In addition, another 17,500 jobs were created in the year to July 2011.
Figures from the Department for State Development show total private new capital expenditure in Western Australia has risen by 150 per cent over the last five years to account for almost one third of the nation’s investment in 2010.
For more information visit the Western Australian Department for State Development by clicking here.
IMAGE: Courtesy of Woodside. North Rankin offshore facility, part of the North West Shelf Venture off the Pilbara coast.
