wa economic profile - june 2021 · web viewstrong chinese steel production saw china’s iron ore...

WESTERN AUSTRALIA ECONOMIC PROFILE – June 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 Budget 2021-22 (May 2021).

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 forecasted Western Australia’s real GSP would grow 2.0% in 2020-21 and 2.75% in 2021-22.

Australia’s real GDP fell 0.2% in 2019-20. The Australian Government Budget 2021-22 forecasted Australia’s real GDP would grow 1.25% in 2020-21 and 4.25% 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 of 18 June 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%

Mar-2016 Mar-2017 Mar-2018 Mar-2019 Mar-2020 Mar-2021

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).

State final demand (SFD) comprises household consumption, private investment and public consumption and investment. 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 domestic (non-trade) economy has largely recovered from the impact of the COVID-19 pandemic. Real SFD rose 3.0% in the March quarter 2021, following growth of 2.0% in the December quarter 2020.

Business investment (up 11.5%) contributed the most to Western Australia’s real SFD growth in the March quarter 2021, followed by dwelling investment and ownership transfer costs (up 7.9%), public final demand (up 1.2%) and household consumption (up 0.3%).

Western Australia’s real SFD rose 0.9% in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasted Western Australia’s real SFD would grow 2.25% in 2020-21 and 3.75% in 2021-22.


Population and incomeWestern Australia’s population1 (change2): Calendar years

-1%

0%

1%

2%

3%

4%

-25,000

-

25,000

50,000

75,000

100,000

2000 2005 2010 2015 2020

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 December quarters of each year.Source: ABS 3101.0 Australian Demographic Statistics (Quarterly).

Western Australia’s population was 2.67 million in 2020, which was 10.4% of Australia’s population.

Western Australia’s population growth fell in 2020 due to the impact of COVID-19 on overseas migration. However, interstate migration made a positive contribution to population growth for the first time since 2013.

Western Australia’s population rose 0.9% in 2020, below growth of 1.5% in 2019, and below compound annual growth of 1.4% over the past 10 years.

Western Australia’s population grew by 24,537 in 2020, comprising:

- Natural increase of 17,432.- Net overseas migration of 5,720.- Net interstate migration of 1,385.

The 2020-21 WA Government Pre-Election Financial Projections Statement forecasted Western Australia’s annual average population would grow 0.8% in 2020-21 and 0.7% in 2021-22 (financial years).

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 (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 and 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

May-01 May-06 May-11 May-16 May-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. 2019-20 = 100.0. Nominal or not adjusted for price changes. Original series.Source: Reserve Bank of Australia (RBA), Statistical Tables (Monthly).

The $A exchange rate fell 0.7% to average US77.3 cents in May 2021, despite rising commodity prices. The prospect of higher interest rates in the United States compared to Australia may be placing downward pressure on the $A.

The $A exchange rate averaged US67.1 cents in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasted the $A exchange rate would average US74.8 cents in 2020-21 and US77.3 cents in 2021-22.

The RBA’s $A commodity price index for Australia rose 5.8% in May 2021.

Strong Chinese steel production saw China’s iron ore spot price (including cost and freight) rise 15.5% to average a record high of US$207.7 a tonne in May 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 forecasted the price of iron ore delivered to north China (including cost and freight) would average US$134.3 a tonne in 2020-21 and US$65.6 a tonne in 2021-22.


Labour marketWestern Australia’s labour market summary

Month7 Change from:Financial

year8 Change from:Calendar

year8 Change from:

May.2021

Apr.2021

May.2020

2019-20 2018-19 2020 2019

Employed full-time1 916,020 -6,463 -0.7% +14,625 +1.6% 916,990 -7,821 -0.8% 909,671 -14,512 -1.6%

Employed part-time2 475,779 +7,407

+1.6%

+95,004+25.0

%433,098 +13,14

6+3.1%

439,156 +8,689 +2.0%

Total employed1,391,79

9 +944+0.1%

+109,629

+8.6% 1,350,088 +5,325+0.4%

1,348,827 -5,823 -0.4%

Total hours worked (millions)3 192.7 +3.0

+1.6%

+19.1+11.0

%186.1 -2.1 -1.1% 184.7 -4.5 -2.4%

Participation rate4 67.8% -0.2pp n.a. +2.7pp n.a. 67.5% -0.8pp n.a. 67.4% -0.8pp n.a.Employment to population ratio

64.6% +0.0pp

n.a. +4.7pp n.a. 63.4% -0.7pp n.a. 63.0% -1.2pp n.a.

Unemployed 68,317 -3,913 -5.4% -42,481 -38.3% 87,331 -601 -0.7% 95,904 +10,883

+12.8%

Unemployment rate5 4.7% -0.3pp n.a. -3.3pp n.a. 6.1% -0.1pp n.a. 6.6% +0.7pp n.a.

Underemployed 104,814 +1,502

+1.5%

-62,735 -37.4% 143,576 +11,233

+8.5%

141,289 +9,459 +7.2%

Underemployment rate6 7.2% +0.1pp

n.a. -4.8pp 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

1,420,000

May-2016 May-2017 May-2018 May-2019 May-2020 May-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 0.1% (944) to 1.39 million in May 2021, following a fall of 1.0% (14,217) in April 2021.

In May 2021, Western Australia’s:- Full-time2 employment fell 0.7% (2,048) to 916,020.- Part-time3 employment rose 1.6% (7,407) to

475,779. Western Australia’s employment in May 2021 was 8,214

(0.6%) above the level in February 2020 (the month of pre-COVID-19 peak employment), but 13,273 (0.9%) below the level reached in March 2021.

Western Australia’s annual average employment rose 0.4% in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasted Western Australia’s annual average employment would grow 1.5% in both 2020-21 and 2021-22.

Western Australia’s employment by industry1: Quarters2

11,188 22,386 22,798 23,341

29,779 33,286 38,580 42,752

58,115 65,183

81,134 88,648 89,929

106,720 116,060 116,308 118,293 121,707

189,093

- 100,000 200,000

Information media & telecommunicationsRental, hiring & real estate services

Arts & recreation servicesElectricity, gas, water & waste services

Finance & insurance servicesAgriculture, forestry & fishing

Wholesale tradeAdministrative & support services

Other services(a)Transport, postal & warehousing

ManufacturingPublic administration & safety

Accommodation & food servicesProfessional, scientific & technical services

MiningEducation & training

Retail tradeConstruction

Healthcare & social assistance

Jun-2020

Jun-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 73% of Western Australia’s average employment over the 4 quarters to the June quarter 2021, including:

- Healthcare and social assistance (13.7%).- Retail trade (8.6%).- Education and training (8.5%).

Goods-producing industries accounted for 27% of Western Australia’s average employment over the 4 quarters to the June quarter 2021, including:

- Construction (8.8%).- Mining (8.4%).- Manufacturing (5.9%).

Healthcare and social assistance (up 22,251 or 13.3%) had the largest rise in Western Australia’s average employment (4 quarters) between the June quarters of 2020 and 2021, followed by accommodation and food services (up 9,044 or 11.2%).

Retail trade (down 6,726 or 5.4%) had the largest fall in Western Australia’s average employment (4 quarters)


between the June quarters of 2020 and 2021, followed by rental, hiring and real estate services (down 3,172 or 12.4%).


0%

1%

2%

3%

4%

5%

6%

7%

8%

9%


Labour marketWestern Australia’s total hours worked1: Months

165m hrs

170m hrs

175m hrs

180m hrs

185m hrs

190m hrs

195m hrs

200m hrs


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 rose in May 2021 and are at around pre-COVID-19 levels.

Western Australia’s total hours worked in all jobs rose 1.6% in May 2021, following a fall of 3.2% in April 2021.

Western Australia’s average hours worked per employed person rose 1.5% to 138.4 hours in May 2021, given total hours worked rose by more than total employment.

The initial impact of COVID-19 restrictions resulted in an 11.3% fall in Western Australia’s total hours worked in April 2020, with another fall of 5.7% in February 2021 as the Perth and Peel regions had a 5-day lockdown in the first week of February 2021.

Western Australia’s participation rate1: Months

64%

65%

66%

67%

68%

69%

70%


Note – Axis does not start at zero. 1 Seasonally adjusted series.Source: ABS 6202.0 Labour Force, Australia (Monthly).

Western Australia’s participation rate has fallen to below pre-COVID-19 levels in the past two months, despite a high level of job vacancies.

Western Australia’s participation rate fell from 68.0% in April 2021 to 67.8% in May 2021.

The fall in Western Australia’s participation rate reflected a decrease in the labour force of 2,969 in May 2021.

Western Australia’s participation rate averaged 67.5% in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasted Western Australia’s participation rate would average 68.2% in both 2020-21 and 2021-22.

Western Australia’s unemployment rate1: Months

1 Seasonally adjusted series.Source: ABS 6202.0 Labour Force, Australia (Monthly).

Western Australia’s unemployment rate fell for the 11th consecutive month in May 2021, after reaching a high of 8.5% in June 2020.

Western Australia’s unemployment rate fell from 4.9% in April 2021 to 4.7% in May 2021, the lowest unemployment rate since December 2013.

Australia’s unemployment rate was 5.1% in May 2021. The number of unemployed persons in Western Australia

fell 5.4% (3,913) to 68,317 in May 2021, following a fall of 3.0% (2,241) in April 2021.

Western Australia’s unemployment rate averaged 6.1% in 2019-20. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasted Western Australia’s unemployment rate would average 6.5% in 2020-21 and 6.0% in 2021-22.


Labour marketWestern Australia’s underemployment rate1: Months

0%

5%

10%

15%


1 Seasonally adjusted series.Source: ABS 6202.0 Labour Force, Australia (Monthly).

Western Australia’s underemployment rate rose slightly in May 2021, following two monthly declines.

Western Australia’s underemployment rate rose from 7.1% in April 2021 to 7.2% in May 2021.

The number of underemployed persons in Western Australia rose 1.5% (1,502) to 104,814 in May 2021, following a fall of 5.4% (5,913) in April 2021.

Western Australia’s underemployment rate averaged 9.8% in 2020.

Western Australia’s internet vacancies1: Months

0

5,000

10,000

15,000

20,000

25,000

30,000


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 recovered in May 2021, following its first fall in 12 months in April 2021.

Western Australia’s internet vacancies rose 4.4% (1,151) to 27,302 in May 2021, following a fall of 4.7% (1,300) in April 2021.

According to the ABS Job Vacancy Survey2, Western Australia had 40,000 job vacancies in the March quarter 2021, 2,600 more than in the previous quarter and 12,400 more than a year ago.

The high level of job vacancies in Western Australia’s reflects the growing demand for workers 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%

Mar-2001 Mar-2006 Mar-2011 Mar-2016 Mar-2021

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 wage price growth eased in the March quarter 2021. However, growth in business and dwelling investment and constraints on labour supply are likely to place upward pressure on wages.

Western Australia’s wage price growth fell from 1.44% between the December quarters of 2019 and 2020 to 1.43% between the March quarters of 2020 and 2021.

Australia’s wages price index rose 1.49% between the March quarters of 2020 and 2021.

Western Australia’s annual average wages rose 1.7% in the 2019-20 financial year. The 2020-21 WA Government Pre-Election Financial Projections Statement forecasted Western Australia’s annual average wages would grow 1.5% in 2020-21 and 1.75% in 2021-22.

Western Australia’s annual adult full-time total earnings averaged $99,284 in the 2020 calendar year, 7.9% ($7,275) above the Australian average of $92,009.


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 2020, following a rise of 1.1% in 2019.

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 forecasted Western Australia’s real household consumption would grow 0.25% in 2020-21 and 3.0% in 2021-22.

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

Apr-2016 Apr-2017 Apr-2018 Apr-2019 Apr-2020 Apr-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 monthly retail turnover has been at elevated levels since mid-2020, bolstered by COVID-19 government income support and stimulus measures, record high mining export earnings and households diverting spending from overseas and interstate travel.

Western Australia’s retail turnover eased slightly in April 2021.

The value of Western Australia’s retail turnover fell 1.5% to $3.37 billion in April 2021, following a rise of 5.5% in March 2021. The fall in April 2021 was driven by:

- Department stores (down 13.3% to $176 million).- Cafes, restaurants and takeaway food services

(down 2.4% to $549 million).- Clothing, footwear and personal accessories (down

6.6% to $177 million).- Other retailing2 (down 2.0% to $483 million).- Household goods (down 0.7% to $583 million).

The value of food retailing in Western Australia rose 1.1% to $1.4 billion in April 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 2020, 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 2020.

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 forecasted Western Australia’s real business investment would grow 2.5% in both 2020-21 and 2021-22.

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%).


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 and 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


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 rose 9.6% to $5.2 billion in the March quarter 2021, following a fall of 1.1% in the December quarter 2020.

In 2020, the value of Western Australia’s engineering construction activity rose 19.0% to $19.0 billion, driven by engineering construction on:

- Heavy industry rising 32.0% to $12.9 billion.- Electricity generation, transmission and distribution

and pipelines rising 10.5% to $2.3 billion.- Bridges, railways and harbours rising 2.1% to

$936 million. The value of Western Australia engineering construction

activity in 2020 fell on:- Telecommunications (down 27.6% to $481 million).- Recreation and other (down 15.1% to $448 million.- Roads, highways and subdivisions (down 2.3% to

$1.6 billion).- Water storage and supply, sewerage and drainage

(down 3.3% to $392 million).

Western Australia’s building activity1: Quarters

$0b

$2b

$4b

$6b

$8b

$10b

Dec-2005 Dec-2010 Dec-2015 Dec-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 rose 3.9% to $2.1 billion in the December quarter 2020, with:

- Residential building activity rising 6.5% to $1.3 billion.

- Non-residential building activity rising 0.4% to $884 million.

The value of building work in the pipeline rose 9.1% to $6.0 billion in the December quarter 2020, to be 8.1% higher than in the December quarter 2019.

In 2020, the value of Western Australia’s building activity fell 6.9% to $8.5 billion, with:

- Residential building falling 6.9% to $4.8 billion.- Non-residential building falling 6.9% to $3.7 billion.


Housing marketWestern Australia’s housing finance1: Months

$0.0b

$0.5b

$1.0b

$1.5b

$2.0b

$2.5b

$3.0b


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. However, this growth is beginning to ease with new applications for these programs closing.

Western Australia’s housing finance fell for consecutive months in April 2021, following 9 successive months of growth between May 2020 and February 2021.

The value of Western Australia’s housing finance commitments fell 6.2% to $2.5 billion in April 2021, following a fall of 3.1% in March 2021.

In April 2021, the value of Western Australia’s housing finance commitments for:

- Owner-occupiers fell 7.9% to $2.1 billion.- Investors rose 2.6% to $453 million.

Western Australia’s dwelling approvals1: Months

0

500

1,000

1,500

2,000

2,500

3,000

3,500


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 have trended upwards since early 2020, although there was considerable monthly fluctuation between September 2020 and April 2021.

The number of dwelling approvals in Western Australia rose 5.5% to 2,881 in April 2021, following a fall of 6.5% in March 2021.

The value of Western Australia’s building approvals2 fell 35.3% to $1.3 billion in April 2021, following a rise of 58.4% in March 2021. In April 2021, the value of approvals for:

- Residential building rose 16.7% to $993 million.- Non-residential building fell 73.5% to $307 million.

High levels of housing finance and residential building approvals indicate that residential building activity in Western Australia will remain high over the next 12 months.

Perth’s housing prices1: Quarters

50 index

60 index

70 index

80 index

90 index

100 index

110 index

120 index


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 2.8% in the March quarter 2021, to be 10.7% higher than in the March quarter 2020.

Perth’s rents rose 0.7% in the March quarter 2021, to be in line with rents in the March quarter 2020.

Perth’s median established house price rose 2.3% to $538,000 in the March quarter 2021.

The median established house price for the rest of Western Australia’s (excluding Perth) rose 3.9% to $400,000 in the March quarter 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 2020, 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 $20.0 billion of goods in April 2021, 30.6% more than in April 2020, due to:

- Iron ore exports rising 58.8% to $13.8 billion.- Non-iron ore exports falling 6.5% to $6.2 billion.

Western Australia’s real goods exports fell 2.6% in 2020. 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 forecasted Western Australia’s real goods exports would be unchanged in 2020-21 and grow 1.5% in 2021-22.

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 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


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).


International tradeWestern Australia’s exports of services1: Calendar years

$0b

$2b

$4b

$6b

$8b

2000 2005 2010 2015 2020

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 7% of Australia’s services exports in 2020.

The value of Western Australia’s services exports fell 32.5% to $5.2 billion in 2020.

Western Australia’s real services exports fell 33.4% in 2020. Western Australia’s travel and transport services exports fell

45.0% to $3.2 billion in 2020, with:- Personal travel down $1.7 billion (73.6%) to

$625 million.- Education travel down $344 million (15.9%) to

$1.8 billion.- Transport down $309 million (31.4%) to

$674 million.- Business travel down $199 million (78.3%) to

$55 million. Western Australia’s business and other services exports

rose 3.9% to $2.1 billion in 2020, with:- Insurance and pension services up $22 million

(17.7%) to $146 million.- Telecommunications, computer and information

services up $21 million (7.7%) to $292 million.Western Australia’s overnight visitor spend1:Calendar years

$0b

$1b

$2b

$3b

$4b

$5b

$6b

$7b

2010 2012 2014 2016 2018 2020Intrastate Intrastate (daytrips)

International Interstate1 Nominal or not adjusted for price changes. Original series.Source: Tourism Research Australia, International and National Visitor Surveys (Quarterly).

The tourism industry accounted for 1.7% ($5.4 billion) of Western Australia’s GSP and 4.9% (65,800) of total employment in the 2019-20 financial year.

The closure of international and interstate borders had a major impact on Western Australia’s tourism industry in the 2020 calendar year.

Tourists in Western Australia spent $7.6 billion in 2020, 31.1% ($3.4 billion) less than in 2019.

In 2020, Western Australia’s spending by:- International visitors fell 76.7% to $541 million.- Interstate visitors fell 68.4% to $615 million.- Intrastate (overnight) visitors rose 1.0% to

$4.4 billion.- Intrastate (daytrips) visitors fell 14.7% to

$2.0 billion. The number of overseas visitors to Western Australia has

fallen significantly since March 2020, although there was a large increase in visitors in April 2021 because of the introduction of the trans-Tasman travel bubble on 18 April. Western Australia had 1,360 short-term overseas visitors arriving in April 2021, 1,110 more than in April 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 are overseas either studying online or have deferred their studies.

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 existing international students from returning to Western Australia to study.

Western Australia had 31,018 international student enrolments between January and March 2021, 16.9% (6,322) lower than the same period of 2020.


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 2020, 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 forecasted Western Australia’s real goods imports would grow 0.25% in 2020-21 and 1.0% in 2021-22.

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: Calendar years

$0b

$5b

$10b

$15b

2000 2005 2010 2015 2020

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 10% of Australia’s services imports in 2020.

The value of Western Australia’s services imports fell 52.5% to $5.4 billion in 2020.

Western Australia’s real services imports fell 55.5% in 2020. Western Australia’s travel and transport services imports fell

67.9% to $2.8 billion in 2020, with:- Personal travel down $4.9 billion (80.9%) to

$1.1 billion.- Transport down $693 million (30.9%) to $1.6 billion.- Business travel down $362 million (77.5%) to

$105 million.- Education travel down $40 million (75.5%) to

$13 million. Western Australia’s business and other services imports fell

1.5% to $2.6 billion in 2020, with:- Insurance and pension services down $143 million

(78.1%) to $40 million.- Professional and management consulting services

down $65 million (20.6%) to $250 million.- Financial services up $211 million (57.2%) to

$580 million.


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 2019-20.

In the 2020 calendar year, minerals accounted for 85% of Western Australia’s minerals and petroleum sales and petroleum accounted for 15%.

In 2020, 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%).


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



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



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.


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).


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: Mar.2021 38,479 +2.4% 2.9% Employed persons: Mar.2021 15,410 +9.2% 1.1%

Unemployment rate: Mar.2021 2.4% -0.9pp Unemployment rate: Mar.2021 10.4% -6.0pp

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



Population: 2019-20 9,262 -0.2% 0.3% Population: 2019-20 52,769 -0.3% 2.0%

Employed persons: Mar.2021 4,651 +4.2% 0.3% Employed persons: Mar.2021 25,007 +4.6% 1.9%

Unemployment rate: Mar.2021 6.8% -2.1pp Unemployment rate: Mar.2021 6.0% -2.5pp

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%


2019

306,000 2.5% Overnight visitors a year: 2017-

2019

709,000 5.7%

PERTH METROPOLITAN AREA WHEATBELT



Population: 2019-20 1,985,64

0

+1.8% 74.5% Population: 2019-20 73,690 +0.3% 2.8%

Employed persons: Mar.2021 1,015,12

9

-0.9% 75.2% Employed persons: Mar.2021 38,781 -2.8% 2.9%

Unemployment rate: Mar.2021 7.1% +1.3pp Unemployment rate: Mar.2021 3.2% +0.1pp

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%


2019

4,414,00

0

35.6% Overnight visitors a year: 2017-

2019

1,047,000 8.4%

PEEL GOLDFIELDS-ESPERANCE



Population: 2019-20 146,239 +2.3% 5.5% Population: 2019-20 53,914 -0.9% 2.0%

Employed persons: Mar.2021 61,803 -5.3% 4.6% Employed persons: Mar.2021 28,491 +3.6% 2.1%

Unemployment rate: Mar.2021 8.9% +3.0pp Unemployment rate: Mar.2021 3.8% -1.8pp

wa economic profile - june 2021 · web viewstrong chinese steel production saw china’s iron ore...

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