Are things better in WA? Hear from some WA business leaders
Looking at national media, feeds are filled with negative news. From endless predictions around the state of the economy, to what’s going to happen with interest rates, stock markets or property prices. You would be forgiven for thinking there isn’t any positive news out there, but there is… and it’s right here in WA!
One of our long-term clients recently shared with us a piece of positive news published to The West – a compilation article from some of WA’s business leaders. We’ll highlight some of the key quotes below:
Impact of interest rate increases
“While another rate hike is expected to put further pressure on household incomes and hit consumer spending, some States will feel the pain worse than others. House prices were still climbing in Perth, while they have started falling in Sydney and Melbourne. Perth has the lowest median house price ($585,114 according to CoreLogic) with the exception of Darwin. WA also has the lowest unemployment rate (3.1 per cent versus 3.9 per cent nationally) and the strongest credit rating in the country.”
– Mark Barnaba, Reserve Bank of Australia board member and Fortescue Metals Group Deputy Chairman
WA’s credit rating
“Global ratings agency S&P this week gave WA back its coveted triple A credit rating for the first time in nine years, saying the upgrade from AA+ reflected the State’s continued budgetary outperformance compared with its domestic and global peers. In a general downturn our Government can fiscally stabilise our economy with more firepower. In short, in WA we have good, sound reasons to be more optimistic than the east.”
– Mark Barnaba, Reserve Bank of Australia board member and Fortescue Metals Group Deputy Chairman
WA’s reliance on commodities
“A sharp fall in commodity prices remains a potential risk for WA’s outlook, however no one is predicting a sudden drop.”
– John Van Der Wielen, Crown Perth Chairman
While things may “flatten for a while”, we remain confident over the medium to long term. We expect the residential property market to remain strong as immigration picks up in a tight labour market and further lifts demand. It simply comes down to the fact that we’re starting on that lower median house price already, which is likely to translate to lower mortgages, and then you’re looking at the supply/demand equation.”
– Russell Gibbs, Chief Executive of Hawaiian Group and Chairman of the West Coast Eagles
Inflation pressures were the biggest concern for WA employees
“Negative and declining real wages growth loom as the State’s biggest headwind. Inflation in Perth over the 12 months to the March quarter was the highest among the capital cities (7.6 per cent) and 2.5 percentage points above the national CPI figure, yet wages growth was just 2.2 per cent for the year below the 2.4 per cent national pace. That puts real wages growth in WA the lowest among the States.”
– Stephen Wu, Commonwealth Bank of Australia Economist
Want to read more of what WA’s business leaders have to say? Read the full article here.
Please note that this article requires a paid subscription to The West to read in full.