CANBERRA(London Post in collaboration with ABC and AAP) by Dr. Majid Khan-According to the Western Australian Chamber of Commerce and Industry (CCIWA), Western Australia is well positioned to weather a potential global recession as the global economy is at a ‘knife’s edge’.
CCIWA forecasts that the state’s economic growth will be 3.5% this year, up from 5.6% last year.
Rising interest rates will force households to tighten their belts, report says
Capital investment is expected to remain firm
CCIWA released its economic outlook for this year and the next two years, warning of a difficult year.
“The household sector in particular will face challenges from higher interest rates and rising costs of living, but we look beyond those challenges,” said Chief Economist Aaron Morley.
“Western Australia’s economic fundamentals are incredibly sound and we should all be confident in our state’s future.”
A man in a suit smiling at the window of a skyscraper. CCIWA Chief Economist Aaron Morley said next year is sure to be a particularly difficult year for households. (ABC News:
Consumers and businesses have struggled with rising costs of living as a result of inflation over the past year, describing it as “the most pressing challenge facing the global economy,” the CCIWA report said.
Supply chain disruptions caused by the novel coronavirus and Russia’s invasion of Ukraine were cited as the main causes of high inflation.
In Washington state, inflation hit 8.3% in December 2022, but Morey said inflation appeared to have peaked as problems eased in his global supply chain. Said there were signs.
“I am convinced that inflation has peaked,” he said.
“Unfortunately, there will probably be another rate hike or two before he does.”
CCIWA forecasts that WA’s domestic economy will grow by 3.5% this year, compared with 5.6% for him last year. Perth’s CPI is expected to reach 6.5% this financial year before easing gradually, returning to the Reserve Bank of Australia’s inflation target of 2.75% in 2024-25.
Business investment in Washington State will remain strong over the next few years, supporting economic growth in the state.
Aerial view of a large he LNG cargo ship being loaded on a jetty in front of the red Pilbara landscape
Growth in business investment in the form of major projects such as Woodside’s Scarborough and the Pluto-2 expansion will support the economy, according to the.
Larger his LNG projects such as Woodside’s Scarborough and Pluto 2 expansions are expected to boost investment this year, along with many newly announced projects in the resources and agriculture sector.
The report also highlights that the shift to sustainable energy and electric vehicles will increase investment in the growing and important minerals sector. This will lead to business investment growth of 4% this year and 9% in 2023-24.
Despite signs that many of the problems plaguing the global economy are easing, CCIWA warned that the state is still facing a difficult 12 months.
The forecast report noted that household consumption in Washington State will remain “very resilient” through the beginning of this fiscal year.
“However, if there are early signs that consumption is about to slow, it’s a different story,” the report said.
A hand takes out an Australian banknote from a wallet. CCIWA forecasts that rising interest rates and costs will slow Washington’s household spending growth to 3% this fiscal year.
Rising cost of living and higher interest rates will ‘force households to tighten their belts’, slowing consumer spending growth, finds