- ABS figures released today confirm positive growth in the WA economy for the most recent financial year
- Business investment records a significant turnaround after four consecutive years of contraction
- Figures also show the WA economy continuing to diversify
The McGowan Government has welcomed figures released today by the Australian Bureau of Statistics, providing official confirmation that the Western Australian economy is out of recession.
In 2017-18, the overall WA economy (Gross State Product) grew by 1.9 per cent, while the domestic economy (State Final Demand) grew by 1.1 per cent. This follows significant contractions in these measures in 2016-17, and four consecutive years of decline in the domestic economy.
The figures also show a significant turnaround in business investment in 2017-18. After declining for four successive years, and by 28.6 per cent in 2016-17, business investment grew at 0.1 per cent in 2017-18. While only modest growth, the significant turnaround from the previous year is an important sign for the WA economy.
The data released today also shows that WA’s economic growth is not confined to the mining sector. While mining grew by 2.8 per cent in gross value added terms in 2017-18, the following sectors also recorded strong growth.
- Financial and insurance services – 5.4 per cent;
- Manufacturing – 3.4 per cent;
- Professional and scientific services – 3.2 per cent;
- Accommodation and food – 3 per cent;
- Arts and recreation – 2.4 per cent; and
- Construction – 2.4 per cent.
As noted by Premier Mark McGowan:
“It has been a defining week for WA’s economy, local jobs and our Budget.
“That we, as a State, are out of recession is the culmination of months of data which have shown the economy is recovering and our plan is working.
“Importantly, while WA is built on its mining sector, the data released today shows that WA’s economic growth is not confined to the mining sector which is vital as we continue to diversify the economy.
“While the news is pleasing there is still much work to be done, and my Government will continue to manage the finances responsibly and make jobs our number one priority.”
As noted by Treasurer Ben Wyatt:
“The journey out of recession has been made inch by inch. Every part of the Western Australian community is doing its bit to get the WA economy back on track. It has been achieved by focusing on every cog in the wheel.
“The McGowan Government has concentrated its efforts on stable, responsible financial management, and is committed to maintaining this focus and discipline in the years to come.”