CBA economist Harry Ottley has released a chart pack on state economies, which shows that Western Australia (WA) is the nation’s boom state.
WA’s economic growth has easily led the nation since the start of the pandemic:
WA has the strongest state sentiment and retail sales:
It also has the strongest business investment, adjusting for population size:
WA has experienced more robust job growth:
It has the lowest unemployment rate:
It has experienced the strongest rise in hours worked:
And has the highest labour force participation of all states:
Despite its booming economy, Western Australia’s CPI inflation is the lowest on the mainland:
This stems from its cheaper energy prices owing to its domestic gas reservation:
As a result, WA has experienced the strongest real wage growth:
WA’s population growth is the strongest in the nation as a percentage of population:
In part, this stems from relatively strong internal migration into WA:
The downside is that this population surge and higher wage growth have driven up WA rents, which are growing the fastest in the nation:
WA’s home values have also risen strongly amid the rapid population expansion and strong economy:
The primary drivers of WA’s booming economy are strong commodity prices and booming resources exports:
WA has by far the most concentrated economy in the nation and is heavily reliant on mining:
This has made WA a volatile boom-and-bust economy.
Currently, the state is enjoying boom times. But we all know what will follow when commodity prices inevitably crash back down to earth.
