AusBN - The sun is starting to ‘break’ over the economy in Western Australia, according to fresh forecasts by international accountancy firm Deloitte.
In its quarterly overview of the States and Territories, Deloitte Access Economics upgraded its forecasts ahead of next month’s WA budget announcement.
WA’s economy is tipped to expand this year after contracting through 2016 and 2017, with growth hitting 1% over the next four years.
This growth is set to be underpinned by state government investment and major non-mining projects, which will help stabilise the jobless rate and deliver slightly larger pay packets.
Deloitte director Chris Richardson said WA had benefited from one of the biggest mining booms on record across the world, but has suffered since the boom ended.
“It was great. Then it was ugly. Now the sun is breaking back through the clouds again,” he said.
However, recent statistics have revealed that WA’s current unemployment rate is at its highest level in 16 years, at 6.9%. Nonetheless, Deloitte has forecasted that this rate will drop to 6.1% this year and next.