22 November 2018
Great news for the Western Australian economy, read the article below.
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By Josh Zimmerman Via: https://www.perthnow.com.au/business/housing-market/house-price-rise-on-cards-as-economy-confidence-improving-says-wa-premier-mark-mcgowan-ng-b881023908z
PREMIER Mark McGowan has this message for West Australians: buy a house now because the good times are coming back.
Exactly one year after The Sunday Times heralded early signs of life for WA’s stagnant economy, the results are in — and they are conclusive.
Data released on Friday showed the State’s domestic economy expanded 1.1 per cent in 2017-18, a remarkable turnaround after plummeting 7.1 per cent in 2016-17 and four consecutive years of decline.
This week another big step was taken towards WA reclaiming its AAA credit rating when Federal Parliament enshrined in law the hard-fought $4.7 billion GST reform package, which The Sunday Times has campaigned for since 2014.
Nearly every month this year has brought news of renewed activity in the mining sector. Rio Tinto, Fortescue Metals Group and BHP have all announced new workforce-hungry iron ore projects and the State now boasts seven lithium mines, with a second $1 billion lithium processing plant on the way near Bunbury.
Mr McGowan said he had not felt more confident about WA’s economic prospects since sweeping to power early last year.
“Every day you are seeing good signs,” he said. “The confidence is back in WA. You can feel it, you can see it and certainly it is an improvement on where it was.”
Mr McGowan tipped a turnaround in the long-declining property market and a jolt to stagnant wages would follow hot on the heels of renewed business investment.
“It is actually a good time to buy (a house),” he said.
“I would encourage people. Prices are low yet economic activity is picking up and so that will inevitably be followed by (demand for) housing.”
The Sunday Times joined Mr McGowan in Wiluna on Thursday to visit the oft-maligned Paroo Station lead mine, where a $US150 million investment in world-first processing technology is set to bring the operation back to viability while eliminating environmental issues previously associated with transporting lead concentrate.
The Rosslyn Hill Mining venture has just received environmental approvals to expand and build an advanced hydrometallurgical facility, which will convert lead concentrate to bars without the traditional smelting process.
Lead is among the suite of minerals abundant in WA that Mr McGowan hopes will catapult the State into global leadership in the renewable energy sector.
To that end, his Government has set aside $5.5 million for a future battery research centre, but recognises that WA-made batteries are a long way off. “That would be a longer-term initiative,” Mr McGowan said.
17 September 2018
The property industry is continuing to drive the Australian economy according to the latest economic growth data.
The Australian economy grew by 0.9 per cent in seasonally adjusted terms in the June 2018 quarter National Accounts released last week, with annual growth of 3.4 per cent.
Investment in new dwellings increased 3.6 per cent for the quarter, with strong results in Victoria and South Australia.
The construction industry grew by 1.9 per cent for the quarter.
Construction within the residential property sector grew by 3.1 per cent and non-residential property sector by 1.3 per cent over the quarter.
The ABS noted that the recent pickup in new dwelling investment reflected strong approvals in early 2018 which are now flowing through to commencements.
“The property industry is helping to propel economic growth to its highest level since 2012, highlighting its importance as a driver of jobs and economic prosperity,” said Ken Morrison, Chief Executive of the Property Council.
“Our national economic well-being depends on a strong property industry, supported by smart investment in vital public infrastructure for our growing cities.”
“The benefits of growth are overwhelmingly positive, but must be locked in and supported by good planning and smart infrastructure investment to ensure all Australians reap the gains,” Mr Morrison said.
30 July 2018
via The West Australian
The West Australian economy is “out of the woods”, one of the nation’s most respected forecasters has declared, with housing and wages finally gaining traction.
Amid warnings the Turnbull Government was making the same mistake of the Howard government by spending a temporary revenue bump on expensive personal income tax cuts, Deloitte Access Economics said the outlook for WA was definitely brightening.
The State endured its worst year on record through 2016-17 while the domestic economy had been in the doldrums for the past four years. But a string of data, including job figures, point to an important turnaround.
Deloitte Access director Chris Richardson said it was now clear WA was recovering from the economic “wave” that was the end of the mining boom.
He expects a lift in retail sales, population growth, wages and housing construction will all improve through this year and accelerate into 2019-20.
Wage growth alone is tipped to more than double the insipid 0.6 per cent growth endured by private sector workers last financial year. “WA’s economy is out of the woods, but it isn’t quite yet out of the doldrums,” Mr Richardson said.
“The good news is that WA’s economy is gradually making its way on to a more settled and sustainable path. The State is restructuring and rebalancing and looking for non-mining related sources of growth.”
While most focus has been on the collapse in engineering spending by the mining sector, Deloitte Access highlighted the step-up by the State Government to fill the void.
It said the first stage of the $3 billion Perth Metronet, which includes 72km of rail line and 18 stations, would give a needed boost to the local economy. The situation is a little different for the Federal Budget, with Deloitte Access concerned that recent tax cuts are built on a mirage of improved tax revenues.
Mr Richardson said tax cuts were built on an increase in tax revenues that was likely to be transitory. The Budget was also expecting to absorb the cuts while it was still in deficit.
He said a gradual slowdown in China would eat into the better tax collections from the resources sector while a tightening of credit would hit east coast property markets. “Oz has repeated an old mistake: spending a temporary revenue boom on permanent promises,” he said.