Western Australia’s state economy is predicted to slow to levels not seen since the turn of the 21st century. Read on to learn more about what’s causing the economic crisis, how it will affect the construction industry, and what might be done to help.
Factors Contributing to WA’s Economy Woes
A lack of big building projects is one of the key problems facing the Western Australian economy. In the past, the state had the Gorgon gas plant, which injected $54 billion into the local economy, and the Perth City Link, worth $3 billion. Now there’s little of note on the building scene, and the State is looking for new opportunities as a result.
Those big building projects kept thousands of locals employed, and without the projects, effects for WA residents are evident. Experts predict the state’s unemployment levels will rise to 6.5 percent over the next 12 months, which puts it above the current national average
Implications for the Construction Industry
According to a Deloitte Access Economics report, private spending on construction
in Western Australia will decrease by more than 20 percent. Public construction works will also drop, which has grave implications for the construction industry. Without enough work on the agenda, construction firms will be forced to downsize and perhaps even dissolve while they wait for better times.
What Can Be Done?
The Federal government may agree to a GST package to stimulate the Western Australian economy, but only if it sees the state is taking its own measures to boost its economy
. These include deregulating shopping hours, selling off its electricity wires and poles, and scrapping “anomalous” business practices. These steps could all help Western Australia weather its current financial circumstances.
As another resource-driven economy, Queensland will be closely watching how Western Australia responds to its current financial woes. In the meantime, why not take advantage of the state’s strong economy and contact TPM Builders
? Our experienced design and construct team can help turn your commercial property dreams into reality.
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