The latest outlook from the WA Chamber of Commerce and Industry suggests that the state economy is showing signs of growth. With the end of the mining boom leading to a four years of declining economic growth and house values, the news is welcome for business and homeowners.
In a recent interview with The West Australian Newspaper1, the Chamber Chief Economist Rick Newnham noted that investment by business and the state government is likely to boost confidence.
“Once investment returns to positive territory and the domestic economy begins to grow, we will see the entire economy start to recover,” Newnham said.
Similarly, Property Council WA executive director Lino Iacomella found that Perth’s northern suburbs were starting to see rising property values, which is a good indicator of overall stability.
“It’s [the northen suburbs] a typical forerunner to an improvement in the property market,” Mr Iacomella said.
“There’s a lot of expectation that within the next 12 months there’s likely to be a noticeable improvement.”
Stability in the unemployment rate and with business investment expected to return to previous levels, the 2018-2019 outlook is positive.
Justin Smith, Principal of Smartline Rockingham Mortgage Advisers, said that the low unemployment rate means that people will be encouraged to move into the surrounding suburbs of Perth.
“The jobless rate is currently 5.5% and is expected to rise marginally to 6% over the next 2 years,” he said.
“While we would like to see it a bit lower, the fact that many people are still employed in some capacity means that the suburbs surrounding Perth are still attractive to people moving from interstate or relocating from overseas.”
With the end of the mining boom, there was a mass migration away from WA. It will be interesting to see if people start to move back west as the economy starts to recover.
1. The West Australian Newspaper Digital Edition: WA economy poised to shake off gloom (20/7/17)