Consyl Publishing & Publicity Ltd

Consyl Publishing & Publicity Ltd

Home > Our Publications > Australian Outlook> 2008> May

Positive outlook for WA

WITH more than AU$160 billion in new projects it is predicted that the Western Australian economy will be protected from any global economic slowdown.
There is renewed confidence China's boom will keep delivering economic dividends to Western Australia.
The forecasting firm Access Economics has released its latest Business Outlook publication, saying 2008 looks fine for China and therefore Australia. A director at the firm, Chris Richardson, says people are being too pessimistic about a slowdown in Australia, with China continuing to underwrite prosperity through higher commodity prices.
"We have learnt that coking coal prices, which many analysts thought might double, have tripled," he said.
"This is a flood of money coming into Australia's economy."
Mr Richardson says a raft of projects will ensure another big year for construction. He said even if there was a correction in China's market a long list of new mining projects lined up for Western Australia will provide a buffer to help the state through an economic slowdown.
"That takes time and part of the reason why even if China stops on a tomorrow Western Australia won't, because of all the projects in the pipeline," he said.
"It's not to say that Western Australia is immune, and it's not to say that it won't happen but that the longer this boom goes the greater the risk that Western Australia will go through a very difficult year at some stage, but it's not imminent."
That view is not shared by the Chamber of Commerce and Industry (CCI), which say its research has led it to be optimistic about the state's economic future. The Chief Executive of the CCI, James Pearson, says international demand and more than AU$160 billion in new projects will help the economy grow.
"Our own research leads us to be optimistic about the prospects for sustained economic growth," he said.
"We think the fundamentals of the Western Australia economy are strong. We've got strong demand from China, emerging demand from India and of course demand from Japan is continuing."
Mr Pearson has called on state and federal governments to address labour shortages, to ensure the future of the boom.
"We need to see an increase in immigration, both temporary and permanent. We'd like to encourage increased participation for example by women and older workers, and we'd also like to see improvements in productivity, for example more flexible arrangements in the workplace to reward workers who are prepared to work smarter and work harder."