Western Australia’s economy is rebounding strongly as the McGowan Government’s safe and strong management of COVID-19 drives record household spending in the September quarter.
Australian Bureau of Statistics National Accounts data released today highlights that WA was the only State to grow in annual average terms, rising 0.3 per cent. This compares to a 2.9 per cent contraction in New South Wales and a 4.2 per cent contraction in Victoria. The national domestic economy contracted by 2.2 per cent.
In the September quarter, the WA economy grew 4.9 per cent, bouncing back strongly from the 6.4 per cent contraction experienced in the June quarter due to COVID-19.
WA’s strong rebound was supported through increases to household spending, which rose 11.7 per cent. This was the strongest result in the nation given WA’s early easing of restrictions and opening up to a greater extent than other States.
Growth was largely driven by a combination of increased spending on hotels, cafes and restaurants, up 45.7 per cent, clothing and footwear, up 47.4 per cent, and health spending, up 40.7 per cent.
Western Australians have also had the confidence to make large purchases such as motor vehicles, which was 19.5 per cent higher in the September quarter compared to the year prior.
The latest economic data continues to highlight the strong position of the Western Australian economy.
In 2019-20 the Western Australian economy grew by 1.4 per cent, compared to a 0.2 per cent contraction in the national economy.
The McGowan Government’s safe and strong management of COVID-19, which allowed for the early easing of restrictions, and the WA Recovery and Jobs Plan has also resulted in the creation of 89,300 jobs since May.
As stated by Premier Mark McGowan:
“Western Australia was able to avoid going into recession, unlike other States across the nation.
“This is thanks to the efforts of all Western Australians, working together as we managed this pandemic.
“WA continues to go from strength to strength as we recover strongly from the impacts of the pandemic.”
As stated by Treasurer Ben Wyatt:
“The Western Australian economy continues to perform strongly and lead the nation across many indicators.
“New data today shows the domestic economy grew, above the national average, by 4.9 per cent in the September quarter.
“This is a dramatic turnaround from the 6.4 per cent contraction experienced in the June quarter and highlights the importance of the McGowan Government’s safe and strong management of COVID-19.
“WA was the only State to grow in annual average terms and experienced record growth in household spending at 11.7 per cent.
“The increase to household consumption was largely driven by increases of households spending on hotels, cafes and restaurants, clothing and footwear and health spending, as the McGowan Government was able to lift restrictions earlier than elsewhere in the country.
“Through the McGowan Government’s Recovery and Jobs Plan I expect to see the WA economy go from strength to strength.”
Treasurer’s office – 6552 5900