The Western Australian economy entering 2025

Western Australia is an important investment destination for Angas Prime. That State’s Budget 2024-25 forecasts annual Gross State Product (GSP) growth of 2.0% in both 2024-25 and 2025-26. State Final Demand is faring well, increasing 0.9% in the June quarter 2024. Key contributors to the state's annual growth included government investment (up 17.0%), business investment (up 11.8%), dwelling investment (up 6.0%) and household consumption (up 2.7%).

Over the 12 months to March 2024, Western Australia's population increased by 3.1%. This was the highest result of any state or territory and compared with a rate of 2.3% nationwide. Net overseas migration (64,900 persons) accounted for 72.9% growth in the state. Together with Queensland and Victoria, WA was one of the few jurisdictions to record positive net interstate migration (10,000 persons). The strong local economy, comparatively affordable housing and recent state government marketing campaigns assisted to bolster the state's appeal.

Mining accounted for 44.7% of Western Australia's GSP in the 12 months to June 2023. The state's exploration expenditure (excluding petroleum) reached $2.6 billion in the 12 months to June 2024, reflecting 61.3% of Australia's total. WA produced 47% of global lithium supply, 38% of the world's iron ore output and 12% of global liquefied natural gas exports in 2023. If it were a country, it would have also ranked among the top ten producers of nickel, cobalt, manganese and rare earths which are components of electric batteries.

Western Australia's seasonally adjusted unemployment rate has been outperforming the national equivalent. The state's August 2024 result of 3.9% was the equal lowest (with South Australia and the Australian Capital Territory). Australia-wide, 4.2% was recorded. The three industries employing the most people in WA are Health Care and Social Assistance (14.7% of employed persons in August, up 63.8% since August 2014), Mining (9.6% of workers in August, up 71.2% since August 2014) and Construction (9.5% of workers in August, up 9.8% since August 2014).

CommSec's July 2024 State of the States report on quarterly economic performance ranks WA second after South Australia, scoring highest on relative population growth and housing finance. According to Corelogic in August 2024, Perth's median house price is growing at the fastest rate in Australia, recording 24.4% annual growth. Inflation in Perth is also rising at the highest rate of any capital, up 2.1% in the June quarter and 4.6% in the 12 months to June 2024. Quarterly drivers of inflation include electricity (up 44.1% after the end of bill rebates), international travel (6.2%) and new dwelling purchases (4.9%).