The Australian Bureau of Statistics released national accounts data today which shows that Western Australia’s domestic economy grew by 4.3 per cent in 2020-21 (measured by State Final Demand [SFD]). The result was the strongest growth of all the States and the highest growth in eight years.
It follows Western Australia being the only State to record growth in its domestic economy in 2019-20, while all other States contracted.
The strong results have been underpinned by Western Australia’s success in crushing the COVID-19 virus, with our economy more open and with less restrictions than any other State. This has resulted in Western Australian businesses and households being consistently amongst the most confident in the nation.
Each element of SFD grew in 2020-21 and all are above pre-COVID levels:
- household consumption grew by 2.6 per cent underpinned by record growth in retail spending, which has been the strongest of any jurisdiction;
- dwelling investment grew by 3.8 per cent, which has been boosted by the McGowan Government’s Building Bonus; and
- business investment grew by 4.3 per cent, underpinned by the continued operation of the mining industry throughout the pandemic.
Since the start of the pandemic, Western Australia’s economy has grown by 5.7 per cent between the December quarter 2019 and June quarter 2021 – also the strongest of the States and almost double the rate of growth of the rest of Australia. Excluding Western Australia, the national domestic economy over this period has grown by 2.9 per cent.
As stated by Premier Mark McGowan:
“Western Australians have worked hard to crush any outbreaks of COVID-19, meaning we are one of the freest and most successful economies in the world throughout the pandemic.
“Western Australia’s strong economy has supported the Commonwealth and other States throughout the pandemic, with billions of dollars flowing to the Eastern States through the continued operation of our mining industry.
“The Liberals and Nationals are a massive threat to our economy.
“The Liberals’ headlong push to open borders to infected States is fraught with danger. If the Liberals have their way they will introduce COVID-19 to Western Australia and cost thousands of jobs and some lives.
“My main concern has and always will be the safety of Western Australians. As vaccination rates continue to increase, we will cautiously remove border restrictions when it is safe to do so.”
