FACTSheet #12, February 2018 Indicates no change from FACTSheet #11 September 2017 Indicates an increase from FACTSheet #11 September 2017 Indicates a decrease from FACTSheet FACTSheet #11 September 2017 #12, February 2018 • Indicates newly released or incomparable data Introduction This latest FACTSheet produced by • Mining accounted for 29% of the Committee for Perth contains GSP in 2016-17, followed by Introduction 1 a snapshot of key facts relating to business and property services The economy 1 the current performance of Perth (10%) and construction (8%). and Western Australia. It draws • Manufacturing accounted for Population growth 2 on data from a range of sources 5% of GSP in 2016-17. Labour market 2 including FACTBase reports, • Agriculture, forestry and fishing Consumption 3 Committee for Perth research, accounted for 3% of GSP in government departments and 2016-17. Investment 3 media sources. Property market & Industry sectors construction activity 3 The economy contribution to real GSP Merchandise exports 4 growth 2016-172 Services exports 4 Gross State Product Mining 4 (% change)1 • An industry’s contribution to WA’s construction industry 5 real GSP growth depends on • Western Australia’s ross real changes to its gross value Economic news 5 G State Product (GSP) of $247.7 added and its share of GSP. Reforming and Reshaping 8 billion in 2016-17 was 14% of • Agriculture, forestry and fishing Lifestyle 15 Australia’s gross domestic gross value-added rose 24% product (GDP). in 2016-17, contributing 0.5 Knowledge and innovation 17 • GSP per capita of $96,466 percentage points to real GSP References 19 in 2016-17 was 34% above growth. Australia’s GDP per capita of • Mining gross value-added rose $71,971. 2% in 2016-17, and with its large • Real GSP fell 2.7% in 2016-17, share of GSP, contributed 0.5 compared with annual percentage points to real GSP average growth of 3.9% over growth. the past ten years. • Construction gross value added • The 2017-18 Government Mid- fell 26% in 2016-17, detracting Year Financial Projections 2.8 percentage points from real Statement forecasts real GSP GSP growth. growth of 2.5% in 2017-18 and 3% in 2018-19. Gross State Income and • Australia’s real GDP rose 2.0% in 2016-17. The Australian terms of trade2 Government forecasts GDP growth of 2.5% in 2017-18 and • Changes in export prices 3% in 2018-19. relative to import prices (terms of trade) affects Gross State Income (GSI) and accounts for Industry sectors the difference between (nominal gross value changes in GSI and GSP. • Western Australia’s terms of 2 added) trade rose 13% in 2016-17. This meant that despite a decline • Goods producing industries in real GSP, Western Australia’s accounted for 47% or $115.8b GSI rose 3.6% in 2016-17, below of GSP in 2016-17, followed annual average growth of by services industries, 43% 4.3%over the past ten years. or $105.5b, and dwelling • The Reserve Bank of Australia’s ownership and other items, $A commodity price index for 11% or $26.4b. Australia rose 22% in 2016-17. FACTSheet #12 February 2018 | 1 FACTSheet #12, February 2018 3 Underutilisation rate • The 2017-18 Government Population growth Mid-Year Financial Projections 4 Statement forecasts an annual • Western Australia’s population (quarterly) of 2.58 million in 2016-17 was average participation rate of • The underutilisation rate 10% of Australia’s population. 67.9% in 2017-18 and 68.2% in measures the proportion • Population growth of 0.8% or 2018-19. of the labour force 21,403 in 2016-17 was below • There were 19,300 job that is unemployed or annual average growth of vacancies in the September underemployed, workers 2.1% over the past ten years. quarter 2017, 200 more than in wanting more hours. • Natural increase of 20,024 and the previous quarter and 1,800 • The underutilisation rate of net overseas migration, up more than a year ago. 15.2% in the December quarter 13,101 offset falling net 2017 was above the 14.9% in interstate migration, down the previous quarter and 15.0% Commodity prices and 11,722 in 2016-17. a year ago. 7 • Annual average population exchange rate • The underutilisation rate growth is forecast to rise to in the December quarter 1.0% in 2017-18 and 1.2% in • The RBA’s monthly $A 2017 comprised an 2018-19. commodity price index rose 2% underemployment rate of 9.2% • The 2015 WA Tomorrow report in November 2017. and an unemployment rate of forecasts a population of 3.27 • The monthly average price 6.0%. million by 2026. of iron ore rose 4% to US$64 a • The underemployment rate of tonne in November 2017. 9.2% in the December quarter • The annual average price The labour market 2017 was above the 9.1% in the of iron ore rose 35% to US$70 previous quarter and 9.0% a a tonne in 2016-17 and is 4 year ago. forecast to fall to US$66 a Employment tonne in 2017-18 and US$62 a tonne in 2018-19. • Western Australia’s employment • The monthly average $A fell by 8,900 to 1.323 million in Industry sector exchange rate fell 1% to US76 January 2018. 5 employment cents in November 2017. • Full-time employment fell by • The annual average $A 2,100 to 899,200 in January 2018. • The services industries exchange rate rose 4% to US75 • Part-time employment fell by accounted for 73% or 979,898 cents in 2016-17 and is forecast 5,100 to 430,500 in January 2018. of total employment in the to rise to US77 cents in 2017-18 • Seasonally adjusted, total December quarter 2017 and and US76 cents in 2018-19. employment fell by 8,900 goods producing industries between December 2017 to accounted for 27% or 357,766. January 2018. • The largest increases in Average annual • The 2017-18 Government employment through the year earnings and wages Mid-Year Financial Projections to the December quarter 8 Statement forecasts annual 2017 were in education growth average employment growth and training, up 23,727 of 2% in 2017-18 and 1.5% in and healthcare and social • Average annual adult full-time 2018-19. assistance, up 18,615. total earnings rose 0.01% to • The largest falls in employment $93,366 in 2016-17. Unemployment rate through the year to the • Western Australia’s average December quarter 2017 were annual adult full-time total • Western Australia’s in manufacturing, down 15,978 earnings were 12% ($9,875) unemployment rate has and mining, down 8,729. above the Australian average steadied at 5.7% in January, of $83,491 in 2016-17. seasonally adjusted, despite • Wages growth of 1.4% in 2016- a slight dip in the number of Participation rate 17 was below annual average people employed. The number and job vacancies growth of 3.3% over the past 10 years, and below Australia’s of jobs fell by around 9,000 6] to be more than 1.3 million, (quarterly) wages growth of 1.9% in 2016- seasonally adjusted, according 17. to the Australian Bureau of • The participation rate • The 2017-18 Government Statistics. About 12,000 fewer measures the proportion Mid-Year Financial Projections males were employed while of the civilian working age Statement forecasts wages 3,000 more females had jobs.26 population that is employed or growth of 1.5% in 2017-18 and • The 2017-18 Government unemployed. 1.75% in 2018-19. Mid-Year Financial Projections • The participation rate of 68.8% Statement forecasts an annual in the December quarter 2017 average unemployment rate was above the 67.9% in the of 5.75% in 2017-18 and 2018- previous quarter and 67.6% a 19.4 year ago. FACTSheet #12 February 2018 | 2 FACTSheet #12, February 2018 over the past ten years. Exploration Consumption • Total gross household 11 disposable income fell by expenditure Real household $2.9 billion in 2016-17, due to changes in employee wages, • Western Australia accounted consumption (% down $3.5b, social benefits for 66% of Australia’s minerals change)9 and other secondary income, exploration expenditure and down $139m, self-employed 47% of Australia’s petroleum • Western Australia accounted and property income, up exploration expenditure in for 10% of Australia’s household $411m and interest and tax 2016-17. consumption in 2016-17. paid on secondary income, • Minerals exploration Household consumption down $340m. expenditure rose 18% to $1.0 accounted for 42% of GSP in billion in 2016-17, mainly due to 2016-17 and contributed 0.2 increases in gold exploration. percentage points to real GSP Investment • Petroleum exploration growth. expenditure fell 50% to $651 • Real household consumption Investment (nominal)9 million in 2016-17. growth of 0.5% in 2016-17 was below annual average growth • Western Australia accounted Property market and of 2.9% over the past ten years. for 19% of Australia’s business • The 2017-18 Government investment in 2016-17. Business construction activity Mid-Year Financial Projections investment accounted for Statement forecasts real 15% of GSP in 2016-17 but household consumption to rise detracted 6.4 percentage Median established 0.75% in 2017-18 and 1.75% in points from real GSP growth. house price and rents 2018-19. • Real business investment fell 12 29% in 2016-17 and is forecast (quarterly) to fall 12% in 2017-18 and 8.5%in Household consumption 2018-19. • Perth’s preliminary median by industry sector • Nominal business investment fell house price increased 1.2%to $516,000 in the December 9 28% to $38.2 billion in 2016-17.