Eco­nomic boost for Premier

Pilbara News - - Election 2017 - Shane Wright

Colin Bar­nett has been de­liv­ered a des­per­ately needed piece of good eco­nomic news ahead of this week’s WA elec­tion, with the do­mes­tic side of the State econ­omy grow­ing for the first time in 18 months.

On the back of a lift in spend­ing by the pri­vate and pub­lic sec­tors on cap­i­tal works, State fi­nal de­mand, which ex­cludes im­ports and ex­ports, lifted by 0.4 per cent or al­most $200 mil­lion in the fi­nal three months of 2016.

It fol­lowed a string of neg­a­tive quar­ters dat­ing back to early 2015 as eco­nomic ac­tiv­ity con­tracted in line with the slow­down in min­ing con­struc­tion.

Since peak­ing, the do­mes­tic side of the WA econ­omy has shrunk al­most 11 per cent or $6 bil­lion led by a near-40 per cent drop in pri­vate cap­i­tal spend­ing.

Trea­surer Scott Mor­ri­son said the im­prove­ment in WA was a pos­i­tive sign and sug­gested the worst may be over for the State.

“What it shows is that WA in par­tic­u­lar has borne the most bru­tal shock of the tran­si­tion of our econ­omy and to be where they are to­day, un­der the strong lead­er­ship that’s been shown by the Premier and his team in WA, I think they will see the light at the end of the tun­nel,” he said.

The na­tional GDP fig­ures showed a 1.1 per cent lift af­ter a 0.5 per cent con­trac­tion the pre­vi­ous quar­ter.

The econ­omy grew thanks to house­hold spend­ing, bet­ter ex­ports led by the min­ing sec­tor and pub­lic cap­i­tal spend­ing.

While house­holds spent up, their wages fell 0.5 per cent, the first drop in al­most five years. Sav­ings dropped to their low­est level since be­fore the global fi­nan­cial cri­sis started in 2008.

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