The state’s response to COVID-19 has positioned the WA economy to rebound faster and stronger than anticipated. The Government’s WA Recovery Plan of more than $5.5 billion has played a major role in assisting businesses during the pandemic.
WA was the only state to experience growth during the last year (increase of 1.1 per cent). The 2021 State Budget reveals that the WA economy is expected to grow by a further 1.25 per cent in 2021.
Even though the Government made the tough decision to shut down the WA border when the pandemic hit, employment is now tracking strongly. WA had recorded its largest ever monthly fall in unemployment rates in August 2020. By October 2020, more than 87 per cent of jobs that had been lost between February 2020 and May 2020 had been recovered. Close to 90 per cent of the fall in hours worked had also been salvaged. Employment rates are set to grow in the months to come.
The mining industry was largely able to contribute to the increased production during the pandemic. Industries with the main detractor from WA’s economic growth include – accommodation, and the food and beverage sector. The border closures had resulted in serious disturbance for businesses reliant on moving people around the country. Some of the biggest challenges our clients are encountering is finding staff.
According to REIWA, property sales in WA increased by 42.5 per cent from December 2019 to December 2020. The RBA has made it clear that it intends to keep the cash rate unchanged for at least the next three years. With this in mind, the WA property market, both rental and sales, is expected to encounter steady growth this year.