wa economic profile - march 2021 · web viewelectricity, gas, water and waste services (4.0% or...
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WESTERN AUSTRALIA ECONOMIC PROFILE – March 2021The EconomyGross state product (% change1): Financial years
4.1%
0.8%
6.7%
5.1%
7.2%
3.7%
5.0%
6.8%
5.1%
2.3%
5.9%
4.6%
8.3%
6.1%5.7%
2.3%
0.9%
-1.3%
2.4%1.6%1.4%
2.0%2.8%
1.3%1.5%
-2%
0%
2%
4%
6%
8%
10%
1999-00 2004-05 2009-10 2014-15 2019-20
Western Australia Australia (GDP)
1 Real or adjusted for price changes. Original series.Source: ABS 5220.0 Australian National Accounts: State Accounts (Annual); 2020-21 WA Government Pre-Election Financial Projections Statement (February 2021); and Australian Government Mid-Year Economic and Fiscal Outlook 2020-21 (December 2020).
Western Australia’s gross state product (GSP) was $316.3 billion in 2019-20, 15.9% of Australia’s gross domestic product (GDP).
Western Australia’s GSP per capita was $119,861 in 2019-20, 54% above Australia’s GDP per capita of $77,807.
Western Australia’s real GSP rose 1.4% in 2019-20, below growth of 1.6% in 2018-19 and compound annual growth of 3.2% over the past 10 years.
The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts Western Australia’s real GSP will grow 2.0% in 2020-21 and 2.75% in 2021-22.
Australia’s real GDP fell 0.3% in 2019-20. The Australian Government Mid-Year Economic and Fiscal Outlook 2020-21 forecasts Australia’s real GDP will grow 0.75% in 2020-21 and 3.5% in 2021-22.
Industry contribution to Western Australia’s GSP1:Financial years
$1.3b$2.8b$4.2b$4.0b$4.9b$5.1b$5.4b$6.3b$8.6b$9.0b$9.1b$10.0b$10.4b$11.6b$12.9b$15.1b$15.7b$16.2b$17.3b
$135.3b
$0b $40b $80b $120b $160b
Arts & recreation servicesInformation, media & telecommunications
Other services(b)Accommodation & food services
Electricity, gas, water & waste servicesRental, hiring & real estate services
Agriculture, forestry & fishingAdministrative & support services
Retail tradeWholesale trade
Education & trainingPublic administration & safety
Transport, postal & warehousingFinance & insurance services
ManufacturingProfessional, scientific & technical services
Healthcare & social assistanceOwnership of dwellings(a)
ConstructionMining
2018-19
2019-20
1 Nominal or not adjusted for price changes. Original series. (a) Gross operating surplus of dwelling owners, with owner-occupiers assigned a rent for their dwellings. (b) Repairs, maintenance and personal services.Source: ABS 5220.0 Australian National Accounts: State Accounts (Annual).
Goods-producing industries accounted for 56% ($175.7 billion) of Western Australia’s GSP in 2019-20, including:
- Mining (43% or $135.3 billion).- Construction (5% or $17.3 billion).- Manufacturing (4% or $12.9 billion).- Agriculture, forestry and fishing (2% or $5.4 billion).
Services industries accounted for 36% ($113.3 billion) of GSP in 2019-20, including:
- Healthcare and social assistance (5% or $15.7 billion).
- Professional, scientific and technical services (5% or $15.1 billion).
- Finance and insurance (4% or $11.6 billion). Dwelling ownership and other items such as net interstate
trade and changes in inventories accounted for the remaining 9% of GSP in 2019-20.
Industry contribution to change1 in Western Australia’s GSP: 2019-20 financial year
-1pp 0pp 1pp 2pp
ConstructionAgriculture, forestry & fishing
Transport, postal & warehousingAccommodation & food services
Wholesale tradeAdministrative & support services
Ownership of dwellings(b)Arts & recreation services
Rental, hiring & real estate servicesEducation & training
ManufacturingRetail trade
Other services(a)Electricity, gas, water & waste services
Finance & insurance servicesProfessional, scientific & technical services
Public administration & safetyInformation, media & telecommunications
Healthcare & social assistanceMining
1 Real or adjusted for price changes. Original series. pp = percentage point. (a) Repairs, maintenance and personal services. (b) Gross operating surplus of dwelling owners, with owner-occupiers assigned a rent for their dwellings.Source: ABS 5220.0 Australian National Accounts: State Accounts (Annual).
The mining industry (up 4.9%) made the largest contribution to Western Australia’s real GSP growth in 2019-20, followed by:
- Healthcare and social assistance (up 4.7%).- Information media and telecommunications
(up 6.1%).- Public administration and safety (up 4.5%).- Professional, scientific and technical services
(up 2.4%).- Finance and insurance services (up 1.4%).
The construction industry (down 4.6%) was the largest detractor from Western Australia’s real GSP growth in 2019-20, followed by agriculture, forestry and fishing (down 10.4%) and transport, postal and warehousing (down 4.9%).
WA Economic Profile Page 1 of 18 March 2021
The EconomyExpenditure on Western Australia’s GSP1: Financial years
-$45.4b
-$40.0b
$7.4b
$9.2b
$39.1b
$50.7b
$108.3b
$187.1b
-$50b $0b $50b $100b $150b $200b
Imports(d)
Other(c)
Services exports
Dwelling investment(b)
Business investment
Public final demand(a)
Household consumption
Goods exports
2018-19
2019-20
1 Nominal or not adjusted for price changes. Original series. (a) General government final consumption expenditure and public gross fixed capital formation. (b) Includes ownership transfer costs. (c) Implicitly comprises net interstate trade in goods and services, changes in inventories, miscellaneous items and a balancing item that equates the sum of GSP across the states and territories to Australia’s GDP. (d) Goods and services.Source: ABS 5220.0 Australian National Accounts: State Accounts (Annual).
Goods exports accounted for 59% ($187.1 billion) of Western Australia’s GSP in 2019-20, followed by:
- Household consumption (34% or $108.3 billion).- Public final demand (16% or $50.7 billion).- Business investment (12% or $39.1 billion).- Dwelling investment and ownership transfer costs
(3% or $9.2 billion).- Services exports (2% or $7.4 billion).
Imports of goods and services detract from Western Australia’s GSP because it is expenditure on goods and services produced outside of the state’s economy (-14% or $45.4 billion in 2019-20)
The Other(c) category detracted $40.0 billion (13%) from Western Australia’s GSP in 2019-20. Western Australia generally has a negative value for this category because of its interstate trade deficit.
Expenditure contribution to change1 in Western Australia’s GSP: 2019-20 financial year
-1.0pp -0.5pp 0.0pp 0.5pp 1.0pp 1.5pp
Household consumption
Dwelling investment(d)
Other(c)
Services exports
Goods exports
Imports(b)
Public final demand(a)
Business investment
1 Real or adjusted for price changes. Original series. pp = percentage point. (a) General government final consumption expenditure and public gross fixed capital formation. (b) Goods and services. (c) Interstate trade in goods and services, changes in inventories and other items. (d) Includes ownership transfer costs.Source: ABS 5220.0 Australian National Accounts: State Accounts (Annual).
Business investment (up 9.4%) made the largest contribution to Western Australia’s real GSP growth in 2019-20, followed by:
- Public final demand (up 4.4%).- Imports of goods and services (down 4.1% –
decreases in imports contribute positively to real GSP growth).
- Goods exports (up 0.3%).- Services exports (up 8.4%).
Household consumption (down 2.4%) was the largest detractor from Western Australia’s real GSP growth in 2019-20, followed by dwelling investment and ownership transfer costs (down 10.6%).
Western Australia’s state final demand1 (expenditure contribution to change2): Quarters
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Dec-2015 Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020
Household consumption Business investmentDwelling investment(a) Public final demand(b)Total SFD
1 Seasonally adjusted series. 2 Real or adjusted for price changes. Note - Changes in SFD are exaggerated by large swings in business investment without adjusting for the associated changes in imports. (a) Includes ownership transfer costs. (b) General government final consumption expenditure and public gross fixed capital formation.Source: ABS 5206.0. Australian National Accounts: National Income, Expenditure and Product (Quarterly).
The domestic economy or state final demand (SFD) accounted for 66% ($207.3 billion) of Western Australia’s GSP in 2019-20. The rest of GSP comprises net international and interstate trade (exports less imports), changes in inventories and other miscellaneous items.
Western Australia’s real SFD rose 1.5% in the December quarter 2020, below growth of 5.5% in the September quarter 2020.
Public final demand (up 3.9%) made the largest contribution to Western Australia’s real SFD growth in the December quarter 2020, followed by dwelling investment and ownership transfer costs (up 11.8%) and household consumption (up 0.3%). Business investment (down 1.0%) detracted from SFD in the December quarter 2020.
Western Australia’s real SFD rose 0.9% in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts Western Australia’s real SFD will grow 2.25% in 2020-21 and 3.75% in 2021-22.
WA Economic Profile Page 2 of 18 March 2021
Population and incomeWestern Australia’s population1 (change2): Financial years
-1%
0%
1%
2%
3%
4%
-25,000
-
25,000
50,000
75,000
100,000
1999-00 2004-05 2009-10 2014-15 2019-20
Natural increase Net overseas migration
Net interstate migration Total population change (%)
Note – Components of population change may not sum to total population growth due to intercensal difference. 1 Original series. 2 Change between June quarters of each year.Source: ABS 3101.0 Australian Demographic Statistics (Quarterly).
Western Australia’s population was 2.66 million in 2019-20, 10.4% of Australia’s population.
Western Australia’s population rose 1.5% in 2019-20, above growth of 1.1% in 2018-19, and in line with compound annual growth of 1.5% over the past 10 years.
Western Australia’s population grew by 38,677 in 2019-20, comprising:
- Net overseas migration of 23,344.- Natural increase of 17,743.- Net interstate migration of -2,410.
The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts Western Australia’s annual average population will grow 0.8% in 2020-21 and 0.7% in 2021-22.
Western Australia’s gross state income and household income per capita (% change)1: Financial years
-10%
-5%
0%
5%
10%
15%
20%
25%
1999-00 2004-05 2009-10 2014-15 2019-20
GSI(a) Gross household disposable income per capita(b)
1 Original series. (a) Real or adjusted for price changes. (b) Nominal or not adjusted for price changes. Household income from wages and salaries, salary sacrifice, non-cash benefits, bonuses, termination payments, government pensions and allowances, profit/loss from own unincorporated business, net investment income and private transfers less income tax, the Medicare levy and the Medicare levy surcharge Source: ABS 5220.0 Australian National Accounts: State Accounts (Annual).
Gross state income (GSI) is an alternative measure of Western Australia’s economy that takes into account changes in the terms of trade or the ratio of export prices to import prices.
In 2019-20, Western Australia’s real GSI grew 8.0%, below growth of 9.6% in 2018-19, but above compound annual growth of 4.0% over the past 10 years
Changes in GSI flow through to household incomes. Western Australia’s gross household disposable income
per capita rose 3.6% to $55,101 in 2019-20. Western Australia’s gross household disposable income
per capita of $55,101 in 2019-20 was 7.2% ($3,707) above the Australian average of $51,394.
Australia’s exchange rate and commodity prices1: Months
0 index
50 index
100 index
150 index
200 index
US0c
US50c
US100c
US150c
US200c
Feb-01 Feb-06 Feb-11 Feb-16 Feb-21
Exchange rate (US cents) $US commodity prices (index)
$A commodity prices (index)
Note – Axis does not start at zero. 1 Monthly index of Australia’s commodity prices. 2018-19 = 100.0. Nominal or not adjusted for price changes. Original series.Source: Reserve Bank of Australia (RBA), Statistical Tables (Monthly).
The $A exchange rate rose 2.4% to average US78.3 cents in February 2021.
The $A exchange rate averaged US67.1 cents in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts the $A exchange rate will average US74.8 cents in 2020-21 and US77.3 cents in 2021-22.
The RBA’s $A commodity price index for Australia rose 3.1% in February 2021.
China’s iron ore spot price (including cost and freight) fell 2.9% to average US$164.8 a tonne in February 2021.
The price of iron ore delivered to north China (including cost and freight) averaged US$92.9 a tonne in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts the price of iron ore delivered to north China (including cost and freight) will average US$134.3 a tonne in 2020-21 and US$65.6 a tonne in 2021-22.
WA Economic Profile Page 3 of 18 March 2021
Labour marketWestern Australia’s labour market summary
Month7 Change from:Financial
year8 Change from:Calendar
year8 Change from:
Feb.2021
Jan.2021
Feb.2020
2019-20 2018-19 2020 2019
Employed full-time1 919,784 +3,960 +0.4% -8,610 -0.9% 916,939 -7,872 -0.9% 909,589 -14,599 -1.6%
Employed part-time2 449,629 -2,181 -0.5% -3,947 -0.9% 433,061 +13,109
+3.1% 439,103 +8,633 +2.0%
Total employed 1,369,413 +1,779 +0.1% -12,557 -0.9% 1,350,000 +5,237 +0.4% 1,348,692 -5,966 -0.4%Total hours worked (millions)3 179.3 -7.8 -4.2% -10.8 -5.7% 186.4 -2.7 -1.4% 184.8 -5.1 -2.7%
Participation rate4 67.7% -0.1pp n.a. -0.5pp n.a. 67.5% -0.8pp n.a. 67.4% -0.8pp n.a.Employment to population ratio
63.7% +0.0pp n.a. -1.1pp n.a. 63.4% -0.7pp n.a. 63.0% -1.2pp n.a.
Unemployed 87,914 -1,998 -2.2%+11,79
3+15.5% 87,326 -606 -0.7% 95,899 +10,87
8+12.8
%Unemployment rate5 6.0% -0.1pp n.a. +0.8pp n.a. 6.1% -0.1pp n.a. 6.6% +0.7pp n.a.
Underemployed 126,344 +23,694
+23.1%
-1,953 -1.5% 143,566 +11,223
+8.5% 141,278 +9,447 +7.2%
Underemployment rate6 8.7% +1.6pp n.a. -0.1pp n.a. 10.0% +0.8pp n.a. 9.8% +0.6pp n.a.n.a. = not applicable. pp = percentage point. 1 Worked 35 hours or more a week. 2 Worked less than 35 hours a week. 3 Total monthly hours worked in all jobs (full time and part time jobs). 4 The proportion of the civilian working age population (aged 15 and older) in the labour force (employed or unemployed people). 5 The proportion of unemployed in the labour force (people without a job who are actively looking for work). 6 The proportion of underemployed in the labour force (workers wanting more hours). 7 Seasonally adjusted series. 8 Original series (except for total hours worked in seasonally adjusted terms).Source: ABS 6202.0 Labour Force, Australia (Monthly).
Western Australia’s employment1: Months
1,260,000
1,280,000
1,300,000
1,320,000
1,340,000
1,360,000
1,380,000
1,400,000
Feb-2016 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021
Note – Axis does not start at zero. 1 Seasonally adjusted series. 2 Worked 35 hours or more a week. 3 Worked less than 35 hours a week.Source: ABS 6202.0 Labour Force, Australia (Monthly).
Western Australia’s employment rose slightly in February 2021, driven by full-time employment.
Western Australia’s employment rose 0.1% (1,779) to 1.37 million in February 2021, following a fall of 1.0% (13,254) in January 2021.
In February 2021, Western Australia’s:- Full-time2 employment rose 0.4% (3,960) to
919,784.- Part-time3 employment fell 0.5% (2,181) to 449,629.
Western Australia’s annual average employment rose 0.4% in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts Western Australia’s annual average employment will grow 1.5% in both 2020-21 and 2021-22.
Western Australia’s employment by industry1: Quarters2
12,293 20,472 25,383 25,496 29,882 34,746
40,291 40,870
58,333 60,973
77,514 84,207
91,169 106,778 109,637 112,545 116,127 120,566
180,659
- 100,000 200,000
Information media & telecommunicationsArts & recreation services
Electricity, gas, water & waste servicesRental, hiring & real estate services
Finance & insurance servicesAgriculture, forestry & fishing
Wholesale tradeAdministrative & support services
Other services(a)Transport, postal & warehousing
ManufacturingAccommodation & food services
Public administration & safetyProfessional, scientific & technical services
Education & trainingMining
Retail tradeConstruction
Healthcare & social assistance
Mar-2020
Mar-2021
1 Original series. 2 Average over the past 4 quarters. Middle month of each quarter: February, May, August and November. (a) Repairs, maintenance and personal services.Source: ABS 6291.0.55.003 Labour Force, Australia, Detailed (Quarterly).
Services industries accounted for 72% of Western Australia’s average employment over the 4 quarters to the March quarter 2021, including:
- Healthcare and social assistance (13.4%).- Retail trade (8.6%).- Education and training (8.1%).
Goods-producing industries accounted for 28% of Western Australia’s average employment over the 4 quarters to the March quarter 2021, including:
- Construction (8.9%).- Mining (8.3%).- Manufacturing (5.8%).
Healthcare and social assistance (up 15,774 or 9.6%) had the largest increase in Western Australia’s average employment (4 quarters) between the March quarters of 2020 and 2021, followed by electricity, gas, water and waste services (up 5,162 or 25.5%).
Retail trade (down 12,429 or 9.7%) had the largest decrease in Western Australia’s average employment (4
WA Economic Profile Page 4 of 18 March 2021
quarters) between the March quarters of 2020 and 2021, followed by transport, postal and warehousing (down 7.000 or 10.3%).
WA Economic Profile Page 5 of 18 March 2021
Labour marketWestern Australia’s total hours worked1: Months
165m hrs
170m hrs
175m hrs
180m hrs
185m hrs
190m hrs
195m hrs
Feb-2016 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021
Note – Axis does not start at zero. 1 Total monthly hours worked in all jobs (full time and part time jobs). Seasonally adjusted series.Source: ABS 6202.0 Labour Force, Australia (Monthly).
Western Australia’s total hours worked fell for the 3rd successive month in February 2021.
Western Australia’s total hours worked in all jobs fell 4.2% in February 2021, following a fall of 1.8% in January 2021.
The large fall in total hours worked in February 2021 coincided with a large increase in the number of employed persons working zero hours for economic reasons.
Average hours worked per employed person in Western Australia fell 4.3% to 130.9 hours in February 2021.
Western Australia’s participation rate1: Months
64%
65%
66%
67%
68%
69%
70%
Feb-2016 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021
Note – Axis does not start at zero. 1 Seasonally adjusted series.Source: ABS 6202.0 Labour Force, Australia (Monthly).
Participation in Western Australia’s labour force has fallen over the past 3 months.
Western Australia’s participation rate fell from 67.8% in January 2021 to 67.7% in February 2021.
The fall in Western Australia’s participation rate reflected a decrease in the labour force of 219 in February 2021.
Western Australia’s participation rate averaged 67.5% in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts Western Australia’s participation rate will average 68.2% in both 2020-21 and 2021-22.
Western Australia’s unemployment rate1: Months
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Feb-2016 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021
1 Seasonally adjusted series.Source: ABS 6202.0 Labour Force, Australia (Monthly).
Western Australia’s unemployment rate fell for the 8th consecutive month in February 2021, after reaching a high of 8.7% in June 2020.
Western Australia’s unemployment rate fell from 6.2% in January 2021 to 6.0% in February 2021.
Australia’s unemployment rate was 5.8% in February 2021. The number of unemployed persons in Western Australia
fell 2.2% (1,998) to 87,914 in February 2021, following a fall of 2.2% (2,025) in January 2021.
Western Australia’s unemployment rate averaged 6.1% in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts Western Australia’s unemployment rate will average 6.5% in 2020-21 and 6.0% in 2021-22.
WA Economic Profile Page 6 of 18 March 2021
Labour marketWestern Australia’s underemployment rate1: Months
0%
5%
10%
15%
Feb-2016 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021
1 Seasonally adjusted series.Source: ABS 6202.0 Labour Force, Australia (Monthly).
Western Australia’s underemployment rate increased for the first time in 10 months in February 2021.
Western Australia’s underemployment rate rose from 7.0% in January 2021 to 8.7% in February 2021.
The large increase in the underemployment rate coincided with a large rise in the number of employed persons working zero hours for economic reasons in February 2021.
The number of underemployed persons in Western Australia rose 23.1% (23,694) to 126,344 in February 2021, following a fall of 9.0% (10,170) in January 2021.
Western Australia’s underemployment rate averaged 10.0% in 2019-20.
Western Australia’s internet vacancies1: Months
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
Feb-2016 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021
1 Online job advertisements on SEEK, CareerOne and Australian JobSearch. Excludes job advertisements on other online job boards, employer web sites, newspapers and word of mouth. Seasonally adjusted series. 2 Recruitment through on site and online job advertisements, by notifying employment agencies or trade unions, and from internal job registers. Original series.Source: Australia Department of Education, Skills and Employment, Vacancy Report (Monthly).
Western Australia’s internet vacancies rose for the 10th consecutive month in February 2021, to its highest level since October 2012.
Western Australia’s internet vacancies rose 0.7% (151) to 21,549 in February 2021, following a rise of 6.5% (1,303) in January 2021.
According to the ABS Job Vacancy Survey2, Western Australia had 37,400 job vacancies in the December quarter 2020, 5,200 more than in the previous quarter and 11,700 more than a year ago.
The recent increase in Western Australia’s job vacancies reflects the increased demand for workers in a recovering economy and labour shortages in parts of the economy that had relied on overseas and interstate workers.
Wage price index (% change1): Quarters
0%
1%
2%
3%
4%
5%
6%
Dec-2000 Dec-2005 Dec-2010 Dec-2015 Dec-2020
Western Australia Australia
1 Change from same quarter of previous year. Original series. Wage price index 2008-09 = 100.0. Note - Changes in the wage price index and average weekly earnings differ because labour quality (job specifications and employee performance and experience) and labour quantity (hours worked and employee numbers) is held constant by the wage price index.Source: ABS 6345.0 Wage Price Index, Australia (Quarterly).
Western Australia’s wages rose 1.44% between the December quarters of 2019 and 2020, above Australia’s wages growth of 1.42%.
Western Australia’s annual average wages rose 1.7% in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts Western Australia’s annual average wages will grow 1.5% in 2020-21 and 1.75% in 2021-22.
Western Australia’s annual adult full-time total earnings averaged $97,999 in 2019-20, 7.9% ($7,215) above the Australian average of $90,784.
WA Economic Profile Page 7 of 18 March 2021
ConsumptionWestern Australia’s household consumption (% change1): Calendar years
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2000 2005 2010 2015 20201 Real or adjusted for price changes. Original series. Source: ABS 5220.0 Australian National Accounts: State Accounts (Annual); and ABS 5206.0. Australian National Accounts: National Income, Expenditure and Product (Quarterly).
Western Australia accounted for 10.3% of Australia’s household consumption in the 2020 calendar year.
Western Australia’s real household consumption fell 3.7% in the 2020 calendar year, following a rise of 1.1% in the 2019 calendar year.
Western Australia’s real household consumption fell 2.4% in the 2019-20 financial year. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts Western Australia’s real household consumption will grow 0.25% in the 2020-21 financial year and 3.0% in the 2021-22 financial year.
Western Australia’s household consumption by industry sector1: Calendar years
-$0.1b
$2.2b
$3.4b
$4.4b
$5.4b
$5.6b
$5.9b
$8.3b
$8.8b
$9.9b
$12.4b
$16.6b
$24.8b
-$10b $0b $10b $20b $30b
Net expenditure interstateCommunications
Clothing & footwearAlcoholic beverages & tobacco
Furnishings & household equipmentEducation services
Hotels, cafes & restaurantsHealth
TransportRecreation & culture
FoodInsurance, finance & other
Housing, water, electricity, gas & other fuels
2019
2020
1 Nominal or not adjusted for price changes. Original series. Source: ABS 5220.0 Australian National Accounts: State Accounts (Annual); and ABS 5206.0. Australian National Accounts: National Income, Expenditure and Product (Quarterly).
The value of Western Australia’s household consumption fell 2.8% to $107.7 billion in 2020.
Housing, water, electricity, gas and other fuels accounted for 23% of Western Australia’s household consumption in 2020, followed by insurance, finance and other (15%) and food (11.5%).
The largest increases in Western Australia’s household consumption in 2020 were in:
- Food (up $954 million or 8.3%).- Furnishings and household equipment
(up $842 million or 18.3%).- Alcoholic beverages and tobacco (up $292 million
or 7.1%). The largest decreases in Western Australia’s household
consumption in 2020 were in:- Transport (down $3.3 billion or 26.9%).- Hotels, cafes and restaurants (down $1.6 billion or
21.9%).- Insurance, finance and other (down $462 million or
2.7%).
Western Australia’s retail turnover1: Months
$2.6b
$2.7b
$2.8b
$2.9b
$3.0b
$3.1b
$3.2b
$3.3b
$3.4b
$3.5b
Jan-2016 Jan-2017 Jan-2018 Jan-2019 Jan-2020 Jan-2021
Note – Axis does not start at zero. 1 Nominal or not adjusted for price changes. Seasonally adjusted series 2 Includes newspapers and books; other recreational goods; pharmaceutical, cosmetic and toiletry goods; and other retailing.Source: ABS 8501.0 Retail Trade, Australia (Monthly).
Western Australia’s retail turnover reached a record high in January 2021.
The value of Western Australia’s retail turnover rose 2.1% to $3.43 billion in January 2021, following a fall of 2.0% in December 2020. The rise in January 2021 was driven by:
- Food (up 3.3% to $1.5 billion).- Other retailing2 (up 3.8% to $477 million).- Household goods (up 2.2% to $579 million).
The value of Western Australia’s retail turnover in January 2021 fell in:
- Clothing, footwear and personal accessories (down 2.9% to $191 million).
- Cafes, restaurants and takeaway food services (down 0.2% to $534 million).
- Department stores (down 0.5% to $186 million).
WA Economic Profile Page 8 of 18 March 2021
InvestmentWestern Australia’s investment1: Calendar years
$0b
$30b
$60b
$90b
2000 2005 2010 2015 2020
Business Dwelling Public
1 Gross fixed capital formation. Nominal or not adjusted for price changes. Original series.Source: ABS 5220.0 Australian National Accounts: State Accounts (Annual); and ABS 5206.0. Australian National Accounts: National Income, Expenditure and Product (Quarterly).
Western Australia accounted for 19.0% of Australia’s business investment in the 2020 calendar year.
In the 2020 calendar year, the value of Western Australia’s:- Business investment rose 8.3% to $39.6 billion.- Dwelling investment fell 9.1% to $7.1 billion.- Public investment rose 0.5% to $8.8 billion.
Western Australia’s real business investment rose 7.0% in the 2020 calendar year.
Western Australia’s real business investment rose 9.4% in the 2019-20 financial year. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts Western Australia’s real business investment will grow 2.5% in both the 2020-21 and 2021-22 financial years.
Western Australia’s private new capital expenditure1: Calendar years
$0b
$10b
$20b
$30b
$40b
$50b
$60b
2000 2005 2010 2015 2020
Mining Non-mining(a)
1 Nominal or not adjusted for price changes. Original series. (a) All industries other than mining; agriculture, forestry and fishing; public administration and safety; and superannuation funds.Source: ABS 5625.0 Private New Capital Expenditure and Expected Expenditure, Australia (Quarterly).
Western Australia accounted for 23% of Australia’s private new capital expenditure in 2020, including:
- 57% of Australia’s mining industry new capital expenditure.
- 9% of Australia’s non-mining industries new capital expenditure.
The mining industry accounted for 72% of Western Australia’s private new capital expenditure in 2020.
In 2020, the value of Western Australia’s new capital expenditure in the:
- Mining industry rose 16.1% to $20.0 billion.- Non-mining industries fell 5.2% to $7.6 billion.
According to the WA Department of Mines, Industry Regulation and Safety, Western Australia had $36.8 billion of major resource projects under construction or committed and $102.8 billion under consideration in March 2021.
Industry contribution to Western Australia’s investment1: Financial years
$0.1b$0.2b$0.2b$0.5b$0.6b$0.6b$0.8b$0.9b$0.9b$1.0b$1.2b$1.2b$1.5b$1.7b$2.0b$2.3b$2.4b
$4.0b$26.1b
$0b $10b $20b $30b
Administrative & support servicesAccommodation & food services
Other services(a)Wholesale trade
Retail tradeFinance & insurance services
ConstructionProfessional, scientific & technical services
Arts & recreation servicesInformation, media & telecommunications
Rental, hiring & real estate servicesManufacturing
Agriculture, forestry & fishingEducation & training
Healthcare & social assistanceElectricity, gas, water & waste services
Public administration & safetyTransport, postal & warehousing
Mining
2018-19
2019-20
1 Gross fixed capital formation. Nominal or not adjusted for price changes. Original series. (a) Repairs, maintenance and personal services.Source: ABS 5220.0 Australian National Accounts: State Accounts (Annual).
The mining industry accounted for 46% ($26.1 billion) of Western Australia’s gross fixed capital formation in 2019-20, followed by:
- Transport, postal and warehousing (7% or $4.0 billion).
- Public administration and safety (4.2% or $2.4 billion).
- Electricity, gas, water and waste services (4.0% or $2.3 billion).
The largest increase in Western Australia’s gross fixed capital formation in 2019-20 was in mining (up $3.7 billion or 16.3%), followed by healthcare and social assistance (up $201 million or 11.0%).
The largest decrease in Western Australia’s gross fixed capital formation in 2019-20 was in construction (down $169 million or 18.3%), followed by professional, scientific and technical services (down $76 million or 8.1%).
WA Economic Profile Page 9 of 18 March 2021
InvestmentWestern Australia’s exploration expenditure1:Calendar years
$0b
$1b
$2b
$3b
2000 2005 2010 2015 2020
Minerals Petroleum
1 Nominal or not adjusted for price changes. Original series.Source: ABS 8412.0 Mineral and Petroleum Exploration, Australia (Quarterly).
Exploration expenditure can be a leading indicator for investment in minerals and petroleum projects.
Western Australia accounted for 62% of Australia’s minerals exploration expenditure in 2020.
The value of minerals exploration expenditure in Western Australia rose 6% to $1.7 billion in 2020, mainly due to increases in gold, iron ore and nickel, cobalt exploration.
In 2020, the value of Western Australia’s exploration expenditure in:
- Gold rose 24.8% to $908 million.- Iron ore rose 14.0% to $384 million.- Nickel and cobalt rose 5.1% to $153 million.
Western Australia accounted for 40% of Australia’s petroleum exploration expenditure in 2020.
The value of petroleum exploration expenditure in Western Australia fell 49% to $379 million in 2020.
Western Australia’s engineering construction activity1: Quarters
$0b
$5b
$10b
$15b
$20b
Sep-2000 Sep-2005 Sep-2010 Sep-2015 Sep-2020
Note –The large value of engineering construction activity in the September quarter 2017 was mainly due to the arrival of the Prelude Floating LNG Plant. 1 Nominal or not adjusted for price changes. Seasonally adjusted series.Source: ABS 8762.0 Engineering Construction Activity, Australia (Quarterly).
The value of Western Australia’s engineering construction activity fell 1.1% to $4.9 billion in the September quarter 2020, following a rise of 10.6% in the June quarter 2020.
In 2019-20, the value of Western Australia’s engineering construction activity rose 5.6% to $17.6 billion, driven by engineering construction on:
- Heavy industry rising 8.4% to $11.3 billion.- Electricity generation, transmission and distribution
and pipelines rising 30.8% to $2.4 billion.- Bridges, railways and harbours rising 0.8% to
$873 million. The value of Western Australia engineering construction
activity in 2019-20 fell on:- Telecommunications (down 34.1% to $559 million).- Water storage and supply, sewerage and drainage
(down 23.2% to $369 million).- Recreation and other (down 14.6% to $443 million.- Roads, highways and subdivisions (down 2.2% to
$1.7 billion).
Western Australia’s building activity1: Quarters
$0b
$2b
$4b
$6b
$8b
$10b
Sep-2005 Sep-2010 Sep-2015 Sep-2020Residential Non-residential Total in pipeline(a)
1 Nominal or not adjusted for price changes. Seasonally adjusted series (except for total building activity in the pipeline). (a) Total residential and non-residential building activity in the pipeline. Original series.Source: ABS 8752.0 Building Activity, Australia (Quarterly).
The value of Western Australia’s building activity fell 2.3% to $2.0 billion in the September quarter 2020, with:
- Residential building activity rising 2.7% to $1.1 billion.
- Non-residential building activity falling 8.1% to $873 million.
The value of building work in the pipeline fell 3.9% to $5.5 billion in the September quarter 2020, to be 3.6% lower than in the September quarter 2019.
In 2019-20, the value of Western Australia’s building activity fell 5.4% to $8.8 billion, with:
- Residential building falling 13.1% to $4.8 billion.- Non-residential building rising 5.9% to $4.0 billion.
WA Economic Profile Page 10 of 18 March 2021
Housing marketWestern Australia’s housing finance1: Months
$0.0b
$0.5b
$1.0b
$1.5b
$2.0b
$2.5b
$3.0b
Jan-2016 Jan-2017 Jan-2018 Jan-2019 Jan-2020 Jan-2021
1 Value of new loan commitments for housing by owner-occupiers and investors. Nominal or not adjusted for price changes. Seasonally adjusted series.Source: ABS 5601.0 Lending Indicators, Australia (Monthly).
The WA Government’s housing stimulus package and the Australian Government’s Homebuilder Scheme have contributed to strong growth in Western Australia’s housing finance and dwelling approvals since June 2020.
The value of Western Australia’s housing finance commitments rose 11.4% to $2.9 billion in January 2021, following a rise of 8.9% in December 2020.
In January 2021, the value of Western Australia’s housing finance commitments for:
- Owner-occupiers rose 12.8% to $2.5 billion.- Investors rose 3.5% to $391 million
The rise in the value of Western Australia’s housing finance commitments will likely lead to higher residential building activity in the next 2 to 3 quarters.
Western Australia’s dwelling approvals1: Months
0
500
1,000
1,500
2,000
2,500
3,000
Jan-2016 Jan-2017 Jan-2018 Jan-2019 Jan-2020 Jan-2021
1 House and other dwelling approvals. Seasonally adjusted series. 2 Residential and non-residential building approvals.Source: ABS 8731.0 Building Approvals, Australia (Monthly).
Western Australia’s dwelling approvals declined in January 2021, after reaching its highest level since August 2015 in December 2020.
The number of dwelling approvals in Western Australia fell 4.1% to 2,450 in January 2021, following a rise of 11.0% in December 2020.
The value of Western Australia’s building approvals2 rose 6.3% to $934 million in January 2021, following a fall of 3.9% in December 2020. In January 2021, the value of approvals for:
- Residential building rose 0.6% to $723 million.- Non-residential building rose 31.5% to $211 million.
The rise in the value of Western Australia’s residential building approvals will likely lead to higher residential building activity in the next 1 to 2 quarters.
Perth’s housing prices1: Quarters
50 index
60 index
70 index
80 index
90 index
100 index
110 index
120 index
Dec-2000 Dec-2005 Dec-2010 Dec-2015 Dec-2020
New dwellings(a) Rents(b)
Note – Axis does not start at zero. 1 Nominal or not adjusted for price changes. Original series. Consumer price index 2011-12 = 100.0. (a) Index of prices for new dwellings purchased by owner-occupiers in Perth. (b) Index of prices for rents in Perth.Source: ABS 6401.0 Consumer Price Index, Australia (Quarterly).
Prices for new dwellings purchased by owner-occupiers in Perth rose 2.2% in the December quarter 2020, to be 8.9% higher than in the December quarter 2019.
Perth’s rents rose 0.3% in the December quarter 2020, although remained 0.8% lower than in the December quarter 2019.
Perth’s median established house price rose 5.5% to $522,000 in the December quarter 2020.
The median established house price for the rest of Western Australia’s (excluding Perth) rose 3.9% to $375,000 in the December quarter 2020.
-
WA Economic Profile Page 11 of 18 March 2021
International tradeWestern Australia’s exports of goods1: Calendar years
$0b
$50b
$100b
$150b
$200b
2000 2005 2010 2015 2020
Total Iron ore Non-iron ore
1 Free on board. Nominal or not adjusted for price changes. Original series.Source: ABS 5368.0 International Trade in Goods and Services, Australia (Monthly).
Western Australia accounted for 51% of Australia’s goods exports in the 2020 calendar year.
The value of Western Australia’s goods exports rose 3.1% to $186.8 billion in the 2020 calendar year, with:
- Iron ore exports rising 20.8% to $115.1 billion.- Non-iron ore exports falling 16.5% to $71.7 billion.
Western Australia exported $18.7 billion of goods in January 2021, 35.0% more than in January 2020, due to:
- Iron ore exports rising 64.1% to $12.0 billion.- Non-iron ore exports rising 2.3% to $6.7 billion.
Western Australia’s real goods exports fell 2.6% in the 2020 calendar year.
Western Australia’s real goods exports rose 0.3% in the 2019-20 financial year. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts Western Australia’s real goods exports will be unchanged in the 2020-21 financial year and grow 1.5% in the 2021-22 financial year.
Western Australia’s major markets for goods exports1: Calendar years
$2.1b
$2.2b
$3.0b
$4.4b
$6.7b
$7.9b
$10.1b
$12.1b
$18.0b
$103.6b
$0b $20b $40b $60b $80b $100b $120b
Germany
Malaysia
Taiwan
Hong Kong (SAR of China)
United States
Singapore
South Korea
United Kingdom
Japan
China (Mainland)
2019
2020
1 Nominal or not adjusted for price changes. Original series.Source: ABS 5368.0 International Trade in Goods and Services, Australia (Monthly).
In 2020, Western Australia’s largest market for goods exports was China ($103.6 billion or 56%), followed by Japan ($18.0 billion or 10%) and the United Kingdom ($12.1 billion or 6%).
Western Australia had majority shares of Australia’s goods exports to the United Kingdom (82%), China (71%), Singapore (66%), Hong Kong SAR of China (64%) and Germany (55%) in 2020.
The largest increases in Western Australia’s goods exports in 2020 were to China (up $8.5 billion), United States (up $5.4 billion) and Germany (up $765 million).
The largest decreases in Western Australia’s goods exports in 2020 were to Japan (down $6.0 billion), Malaysia (down $892 million) and United Arab Emirates (down $775 million).
Minerals and petroleum accounted for 94% ($176.2 billion) of Western Australia’s goods exports in 2020.
Agriculture, food, fibre, fisheries and forestry (excluding confidential items) accounted for 4% ($7.5 billion) of Western Australia’s goods exports in 2020.
Western Australia’s major export commodities by major market1: 2020 calendar yearIron ore $m % Petroleum2 $m % Gold $m % Alumina3 $m % Nickel ore $m %China(a) 91,957 80 Japan 10,616 43 UK 11,892 55 UAE 1,742 27 China(a) 1,318 44Japan 6,637 6 China(a) 4,450 18 USA 5,648 26 Bahrain 864 13 Japan 351 12South Korea 6,557 6 Singapore 3,496 14 Hong Kong(b) 1,539 7 China(a) 651 10 South Korea 336 11Singapore 3,093 3 South Korea 1,948 8 Singapore 753 3 South Africa 646 10 USA 236 8Hong Kong(b)
2,822 2 Thailand 971 4 Germany 476 2 Mozambique 515 8 Netherlands 192 6
Other 4,029 4 Other 3,164 13 Other 1,488 7 Other 2,127 32 Other 544 18Total 115,095 100 Total 24,644 100 Total 21,795 10
0Total 6,545 10
0Total 2,978 100
Wheat $m % Precious metal ore4
$m % Mineral sands5
$m % Gold coin $m
South Korea
409 17 South Korea 505 32 China(a) 664 46 Germany 784 62 China(a) 465 40
China(a) 396 17 Germany 436 28 Netherlands 146 10 USA 311 25 Philippines 140 12Japan 304 13 Philippines 343 22 UK 113 8 Hong
Kong(b)70 6 South
Korea108 9
Philippines 236 10 Japan 181 11 Saudi Arabia 76 5 NZ 19 2 Japan 91 8Indonesia 206 9 Finland 89 6 Spain 72 5 Japan 18 1 Taiwan 54 5Other 823 35 Other 28 2 Other 368 26 Other 62 5 Other 293 25Total 2,37 10 Total 1,58 10 Total 1,43 10 Total 1,26 10 Total 1,15 10
WA Economic Profile Page 12 of 18 March 2021
5 0 3 0 8 0 3 0 2 0Note – Components may not add to totals due to rounding. 1 Nominal or not adjusted for price changes. Original series. 2 LNG, condensate, crude oil and LPG. 3 Includes bauxite. 4 Excludes gold and silver. 5 Garnet, illmenite, leucoxene, zircon and rutile. 6 Includes concentrates. Excludes the value of copper exports to Japan, Malaysia, Philippines and Taiwan between 1 June and 1 October 2020 due to confidentiality restrictions. Thereafter, the value of copper exports to these markets were included in the total value of copper exports, but excluded from the individual market values. (a) Mainland. (b) Special Administrative Region of China.Source: ABS 5368.0 International Trade in Goods and Services, Australia (Monthly); and WA Department of Mines, Industry Regulation and Safety, Resource Data Files (Bi-annual).
WA Economic Profile Page 13 of 18 March 2021
International tradeWestern Australia’s exports of services1: Financial years
$0b
$2b
$4b
$6b
$8b
1999-00 2004-05 2009-10 2014-15 2019-20
Total Travel & transport(a) Business & other services(b)
1 Customs Value. Nominal or not adjusted for price changes. Original series. (a) Education, personal and business travel; and passenger, freight, postal, courier and other transport. (b) Technical, trade-related & other business; financial services; government goods & services; telecommunications, computer & information; insurance & pension; personal, cultural & recreational; professional & management consulting; intellectual property charges; research & development; and others.Source: ABS 5368.0.55.003/004 International Trade: Supplementary Information, Financial Year/Calendar Year (Annual).
Western Australia accounted for 8% of Australia’s services exports in 2019-20.
The value of Western Australia’s services exports rose 10.0% to $7.4 billion in 2019-20.
Western Australia’s real services exports rose 8.4% in 2019-20.
Western Australia’s travel and transport services exports fell 7.2% to $5.1 billion in 2019-20, with:
- Education travel up 5.2% to $2.1 billion.- Personal travel down 16.2% to $1.9 billion.- Transport down 4.3% to $900 million.- Business travel down 34.4% to $172 million.
Western Australia’s business and other services exports rose 85.1% to $2.3 billion in 2019-20, with:
- Technical, trade-related and other business services up 62.3% to $664 million.
- Financial services up $506 million to $509 million.- Telecommunications, computer and information
services up $214 million to $315 million.
Western Australia’s overnight visitor spend1:Financial years
$0b
$1b
$2b
$3b
$4b
$5b
$6b
$7b
2010-11 2013-14 2016-17 2019-20
Intrastate Intrastate (daytrips) International Interstate
1 Nominal or not adjusted for price changes. Original series.Source: Tourism Research Australia, International and National Visitor Surveys (Quarterly).
The tourism industry accounted for 2.1% ($6.0 billion) of Western Australia’s GSP and 5.0% (66,600) of total employment in 2018-19.
Visitors to Western Australia spent $9.1 billion in 2019-20, 14.2% ($1.5 billion) less than in 2018-19.
In 2019-20, Western Australia’s spending by:- International visitors fell 22.7% to $1.7 billion.- Interstate visitors fell 11.1% to $1.6 billion.- Intrastate (overnight) visitors fell 15.9% to
$3.7 billion.- Intrastate (daytrips) visitors fell 4.5% to $2.1 billion.
The number of overseas visitors to Western Australia has fallen significantly since March 2020 due to COVID-19 travel restrictions.
Western Australia had 650 short-term overseas visitors arriving in January 2021, 99.1% (72,670) fewer than in January 2020.
Western Australia’s international students1: Calendar years
0
10,000
20,000
30,000
40,000
50,000
60,000
2002 2005 2008 2011 2014 2017 20201 Enrolments. Original series.Source: Department of Education, Skills and Employment, International student data (Monthly).
Many international students arrived in Western Australia before COVID-19 travel restrictions, while some international students are enrolled in courses but have left Western Australia temporarily.
Western Australia had 49,661 international student enrolments in 2020, 6.8% (3,643) fewer than in 2019.
Western Australia’s share of Australia’s international student enrolments rose from 5.60% in 2019 to 5.63% in 2020.
Ongoing travel restrictions have stopped the arrival of new international students to Western Australia and prevented some existing international students from returning to Western Australia to study.
WA Economic Profile Page 14 of 18 March 2021
International tradeWestern Australia’s imports of goods1: Calendar years
$0b
$10b
$20b
$30b
$40b
2000 2005 2010 2015 2020
Total Machinery & transport equipment Other(a)
1 Customs Value. Nominal or not adjusted for price changes. Original series. (a) Other manufactures, gold (for further refining and re-export), mineral fuels, chemicals, agricultural products and other goods.Source: ABS 5368.0 International Trade in Goods and Services, Australia (Monthly).
Western Australia accounted for 11% of Australia’s goods imports in the 2020 calendar year.
The value of Western Australia’s goods imports fell 1.0% to $33.1 billion in the 2020 calendar year, with:
- Machinery and transport equipment imports rising 5.0% to $10.7 billion.
- Other imports falling 3.6% to $22.4 billion, mainly due to decreases in mineral fuels and miscellaneous manufactures.
Western Australia’s real goods imports rose 1.3% in the 2019-20 financial year. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts Western Australia’s real goods imports will grow 0.25% in the 2020-21 financial year and 1.0% in the 2021-22 financial year.
Western Australia’s major markets for goods imports1: Calendar years
$0.9b
$1.0b
$1.1b
$1.1b
$1.2b
$1.4b
$2.4b
$2.7b
$4.6b
$6.1b
$0b $2b $4b $6b $8b
United Arab Emirates
Germany
Indonesia
Singapore
United Kingdom
Malaysia
Japan
Thailand
United States
China (Mainland)
2019
2020
1 Nominal or not adjusted for price changes. Original series.Source: ABS 5368.0 International Trade in Goods and Services, Australia (Monthly).
In 2020, Western Australia’s largest market for goods imports was China ($6.1 billion or 18%), followed by the United States ($4.6 billion or 14%) and Thailand ($2.7 billion or 8%).
The largest increases in Western Australia’s goods imports in 2020 were from China (up $673 million), Hong Kong SAR of China (up $490 million) and Thailand (up $422 million).
The largest decreases in Western Australia’s goods imports in 2020 were from Papua New Guinea (down $1.5 billion), Malaysia (down $878 million) and United Arab Emirates (down $841 million).
Western Australia’s imports of services1: Financial years
$0b
$5b
$10b
$15b
1999-00 2004-05 2009-10 2014-15 2019-20
Total Travel & transport(a) Business & other services(b)
1 Customs Value. Nominal or not adjusted for price changes. Original series. (a) Education, personal and business travel; and passenger, freight, postal, courier and other transport. (b) Technical, trade-related & other business; financial services; government goods & services; telecommunications, computer & information; insurance & pension; personal, cultural & recreational; professional & management consulting; intellectual property charges; research & development; and others.Source: ABS 5368.0.55.003/004 International Trade: Supplementary Information, Financial Year/Calendar Year (Annual).
Western Australia accounted for 11% of Australia’s services imports in 2019-20.
The value of Western Australia’s services imports fell 16.2% to $9.4 billion in 2019-20.
Western Australia’s real services imports fell 20.7% in 2019-20.
Western Australia’s travel and transport services imports fell 22.0% to $6.7 billion in 2019-20, with:
- Personal travel down 26.6% to $4.3 billion.- Transport down 9.9% to $2.0 billion.- Business travel down 19.7% to $339 million.- Education travel down 26.5% to $36 million.
Western Australia’s business and other services imports rose 2.7% to $2.7 billion in 2019-20, with:
- Technical, trade-related and other business services down 8.8% to $1.2 billion.
- Financial services up $560 million to $584 million.- Telecommunications, computer and information
services up 25.5% to $384 million.
WA Economic Profile Page 15 of 18 March 2021
Mining industryMinerals production: 2020 calendar yearCommodity Unit
Western Australia
Australia WorldWA shareof Aust.
WA shareof world
Lithium Kt 40 40 82 100% 48%Iron ore Mt 846 855 2,354 99% 36%Garnet Kt 296 296 1,046 100% 28%Diamonds Mct 14 14 56 100% 25%Zircon Kt 177 480 1,425 37% 12%Alumina Mt 14 21 125 68% 11%Rare earths Kt 23 23 247 100% 9%Gold t 209 317 3,087 66% 7%Nickel ore Kt 165 165 2,470 100% 7%Rutile Kt 39 200 634 20% 6%Salt Mt 12 12 264 96% 4%Cobalt Kt 6 6 135 100% 4%Illmenite1 Kt 313 800 7,565 39% 4%Manganese Kt 544 3,300 18,490 16% 3%Copper Kt 146 879 19,799 17% 1%Mt = Million tonnes. Kt = Thousand tonnes. t = tonnes. Mct = Million carats. 1 Excludes ilmenite feedstock for synthetic rutile production.Source: WA Department of Mines, Industry Regulation and Safety, Resource Data Files (Annual).
Western Australia is the main exporter of minerals and petroleum in Australia and accounts for a significant proportion of the world’s minerals and petroleum production.
In 2019-20, Western Australia had 123 high-value, export-oriented mining projects and 13 major mineral processing operations transforming bauxite into alumina; gold ore into gold bars; nickel ore into nickel concentrate, matte, powder and briquettes; rutile into titanium dioxide pigment; zircon into fused zirconia; and silica sand into silicon metal.
In 2019-20, Western Australia also had 22 petroleum projects that produced gas, condensate and crude oil from 53 onshore and offshore fields. These projects had 13 processing plants, mainly for LNG exports and domestic gas supply.
Western Australia’s mineral and petroleum sales1:Calendar years
$0b
$50b
$100b
$150b
$200b
2000 2005 2010 2015 2020
Total Minerals Petroleum
1 Nominal or not adjusted for price changes. Original series.Source: WA Department of Mines, Industry Regulation and Safety, Resource Data Files (Bi-Annual).
Western Australia accounted for 65% of Australia’s mining industry gross value added in the 2019-20 financial year.
Western Australia’s mining industry gross value added rose 25.4% to $135.3 billion in the 2019-20 financial year.
In the 2020 calendar year, minerals accounted for 85% of Western Australia’s minerals and petroleum sales and petroleum accounted for 15%.
In the 2020 calendar year, Western Australia’s minerals and petroleum sales rose 3.5% to $174.4 billion, with:
- Minerals sales up 13.7% to $147.8 billion.- Petroleum sales down 31.0% to $26.6 billion.
Western Australia’s major minerals and petroleum sales1: Calendar years
$0.8b
$0.8b
$1.4b
$1.6b
$1.8b
$3.3b
$3.7b
$5.9b
$17.2b
$19.3b
$116.2b
$0b $20b $40b $60b $80b $100b $120b
Lithium(c)
Mineral sands(b)
Base metal ore(a)
Natural gas
Crude oil
Nickel ore
Condensate
Alumina & bauxite
Gold
LNG
Iron ore
2019
2020
1 Nominal or not adjusted for price changes. Original series. (a) Copper, lead and zinc (contains gold and silver). (b) Garnet, illmenite, leucoxene, zircon and rutile. (c) Spodumene.Source: WA Department of Mines, Industry Regulation and Safety, Resource Data Files (Bi-Annual).
Iron ore accounted for 67% of the value of Western Australia’s minerals and petroleum sales in 2020, followed by LNG (11%) and gold (10%).
The largest increases in the value of Western Australia’s minerals and petroleum sales in 2020 were in:
- Iron ore (up $16.5 billion or 16.5%).- Gold (up $3.4 billion or 24.7%).- Nickel ore (up $246 million or 8.0%).
The largest decreases in the value of Western Australia’s minerals and petroleum sales in 2020 were in:
- LNG (down $7.9 billion or 29.0%).- Condensate (down $3.1 billion or 45.9%).- Alumina and bauxite (down $1.5 billion or 20.4%).
WA Economic Profile Page 16 of 18 March 2021
Mining industryWestern Australia’s iron ore sales1: Calendar years
0 index
50 index
100 index
150 index
200 index
250 index
300 index
$0b
$20b
$40b
$60b
$80b
$100b
$120b
2000 2005 2010 2015 2020
Value ($b) Volume (index) Price (index)
1 Nominal or not adjusted for price changes. Original series. Indexes 2010 = 100.0.Source: WA Department of Mines, Industry Regulation and Safety, Resource Data Files (Bi-Annual).
The value of Western Australia’s iron ore sales rose 16.5% to $116.2 billion in 2020, due to rising sales volumes and average prices.
The volume of Western Australia’s iron ore sales rose 4.3% to 846 million tonnes in 2020.
The 2020-21 WA Government Pre-Election Financial Projections Statement forecasts the volume of Western Australia’s iron ore sales will rise to 881 million tonnes by 2023-24.
The annual average $A unit price (free on board) of Western Australia’s iron ore sales rose 11.7% in 2020.
Western Australia’s LNG sales1: Calendar years
0 index
50 index
100 index
150 index
200 index
250 index
300 index
$0b
$5b
$10b
$15b
$20b
$25b
$30b
2000 2005 2010 2015 2020
Value ($b) Volume (index) Price (index)
1 Nominal or not adjusted for price changes. Original series. Indexes 2010 = 100.0.Source: WA Department of Mines, Industry Regulation and Safety, Resource Data Files (Bi-Annual).
The value of Western Australia’s LNG sales fell 29.0% to $19.3 billion in 2020, due to falling average prices offsetting rising sales volumes.
The volume of Western Australia’s LNG sales rose 0.3% to 44 million tonnes in 2020.
The annual average $A unit price (free on board) of Western Australia’s LNG sales fell 29.2% in 2020.
Western Australia’s gold sales1: Calendar years
0 index
50 index
100 index
150 index
200 index
$0b
$5b
$10b
$15b
$20b
2000 2005 2010 2015 2020
Value ($b) Volume (index) Price (index)
1 Nominal or not adjusted for price changes. Original series. Indexes 2010 = 100.0.Source: WA Department of Mines, Industry Regulation and Safety, Resource Data Files (Bi-Annual).
The value of Western Australia’s gold sales rose 24.7% to $17.2 billion in 2020, due to rising average prices offsetting falling sales volumes.
The volume of Western Australia’s gold sales fell 2.0% to 209 tonnes in 2020.
The annual average $A unit price (free on board) of Western Australia’s gold sales rose 27.3% in 2020.
WA Economic Profile Page 17 of 18 March 2021
RegionsWestern Australia’s regional economies (Regional Development Commission Regions)
n.a. = not available. pp = percentage point. 1 Change from previous year for annual series (nominal or not adjusted for price changes) and change from same quarter of the previous year for the quarterly labour force series. Source: WA Department of Primary Industries and Regional Development, GRP estimates (Annual); ABS 3218.0 Regional Population Growth Australia (Annual); Department of Education, Skills and Employment, Small Area Labour Markets (Quarterly); WA Department of Mines, Industry Regulation and Safety, Resource Data Files (B-Annual); ABS 8731.0 Building Approvals, Australia (Monthly); and Tourism Western Australia, Regional Development Commission Fact Sheets (Annual).
WA Economic Profile Page 18 of 18 March 2021
PILBARA & OFFSHORE KIMBERLEY
Figure Annual change1 WA share Figure Annual change1 WA share
Gross regional product: 2019-20 $57.3b +20.0% 18.1% Gross regional product: 2019-20 $3.2b +7.7% 1.0%
Population: 2019-20 62,841 +1.1% 2.4% Population: 2019-20 36,054 +0.4% 1.4%
Employed persons: Sep.2020 37,166 n.a. 2.8% Employed persons: Sep.2020 14,240 n.a. 1.1%
Unemployment rate: Sep.2020 3.0% n.a. Unemployment rate: Sep.2020 14.8% n.a.
Minerals & petroleum sales: 2020 $142.1b +3.7% 81.5% Minerals & petroleum sales: 2020 $690m -2.2% 0.4%
Building approvals: 2019-20 $358m +68.5% 3.9% Building approvals: 2019-20 $87m +18.5% 1.0%
Overnight visitors a year: 2017-
2019
940,000 7.6% Overnight visitors a year: 2017-
2019
430,000 3.5%
GASCOYNE MID WEST
Figure Annual change1 WA share Figure Annual change1 WA share
Gross regional product: 2019-20 $1.6b +12.3% 0.5% Gross regional product: 2019-20 $9.5b +13.4% 3.0%
Population: 2019-20 9,262 -0.2% 0.3% Population: 2019-20 52,769 -0.3% 2.0%
Employed persons: Sep.2020 4,437 n.a. 0.3% Employed persons: Sep.2020 23,804 n.a. 1.8%
Unemployment rate: Sep.2020 8.5% n.a. Unemployment rate: Sep.2020 7.9% n.a.
Minerals & petroleum sales: 2020 $111m +13.6% 0.1% Minerals & petroleum sales: 2020 $4.3b -9.3% 2.4%
Building approvals: 2019-20 $36m +76.3% 0.4% Building approvals: 2019-20 $164m +99.4% 1.8%
Overnight visitors a year: 2017-
2019
306,000 2.5% Overnight visitors a year: 2017-
2019
709,000 5.7%
PERTH METROPOLITAN AREA WHEATBELT
Figure Annual change1 WA share Figure Annual change1 WA share
Gross regional product: 2019-20 $186.1b +6.7% 58.8% Gross regional product: 2019-20 $7.4b +3.8% 2.3%
Population: 2019-20 1,985,64
0
+1.8% 74.5% Population: 2019-20 73,690 +0.3% 2.8%
Employed persons: Sep.2020 1,011,44
5
n.a. 75.3% Employed persons: Sep.2020 38,817 n.a. 2.9%
Unemployment rate: Sep.2020 6.6% n.a. Unemployment rate: Sep.2020 3.4% n.a.
Minerals & petroleum sales: 2020 $3.9b -28.5% 2.2% Minerals & petroleum sales: 2020 $2.6b +124.5% 1.5%
Building approvals: 2019-20 $7.1b +1.5% 78.1% Building approvals: 2019-20 $150m +6.0% 1.6%
Overnight visitors a year: 2017-
2019
4,414,00
0
35.6% Overnight visitors a year: 2017-
2019
1,047,000 8.4%
PEEL GOLDFIELDS-ESPERANCE
Figure Annual change1 WA share Figure Annual change1 WA share
Gross regional product: 2019-20 $10.3b +10.5% 3.3% Gross regional product: 2019-20 $21.9b +18.6% 6.9%
Population: 2019-20 146,239 +2.3% 5.5% Population: 2019-20 53,914 -0.9% 2.0%
Employed persons: Sep.2020 62,446 n.a. 4.6% Employed persons: Sep.2020 27,295 n.a. 2.0%
Unemployment rate: Sep.2020 8.4% n.a. Unemployment rate: Sep.2020 5.2% n.a.