HomeIt’s known worldwide that Western Australia’s economy is thriving. In 2005, it grew by around 6%, twice the national average. And the factors driving WA’s ongoing economic rise are equally well known – mining exports and investment, strong construction activity and record levels of State Government spending on infrastructure are all key drivers. Remarkably, WA produces about 30% of Australia’s $140billion in goods exports, with demand for WA’s minerals and energy exports showing no sign of abating.
The thriving economy creates a number of positive knock-on effects, not least in terms of Perth’s housing market. New project home prices and existing house prices both rose by around 17%pa in 2005, creating a strong wealth effect for homeowners – a key reason why WA’s consumer spending and sales growth statistics are equally impressive. All the evidence suggests that a combination of strong jobs growth, high house prices and 5% wages growth as a result of the state’s exceptional economic success are more than compensating the negative implications of long-term rises in petrol prices.
