Published on April 29th, 2013
Strong growth predicted for WA economy
The Western Australian economy is predicted to grow by 6.5 per cent over 2013-14, according to the Chamber of Commerce and Industry (CCI) March quarter 2013 outlook.
The report also identified Western Australia as the best performing state in the country, registering with the lowest rate of unemployment at 4.7 per cent.
"The recent reports highlight that the performance of WA’s economy is head and shoulders above other states," said state treasurer Troy Buswell.
Driving this predicted growth over the next 12 months is the expected increase in dwelling investments. The CCI has forecasted this to increase by four per cent over 2012-13, and eight per cent in 2013-14.
The current low rate of unemployment may be an attractive feature that the state possesses, and may help to lure more residents to the state.
"Our recent growth and projections of future growth are the envy of any developed economy and coupled with the lowest unemployment rate in the country, it is no wonder we have an unprecedented rate of people moving to this great state," said Mr Buswell.
This is great news for the real estate industry in Western Australia, as the increase in population means that there may be more people looking to purchase and rent residential property. Increased demand could also potentially lead on to higher median property prices and rents, flowing on to high rental yields.
Western Australia is also known for its thriving mining industry, which employs a large number of residents in the state. Sales for the resources sector in WA throughout 2011-12 totalled to $106 billion – with iron ore and gold accounting for 86 per cent of the total.
The resource sector is very valuable to the state, and brings in large influxes of people looking for work and accommodation. Future growth in this sector will help the economy to grow to even better rates.