Mid-year Review highlights continued strength of WA economy and State finances

• State Government hands down 2024-25 Mid-year Review
• Western Australia's domestic economy expected to continue growing at double the rate of national economy
• Forecasts for Gross State Product, State Final Demand and Employment growth have all been revised up
• A seventh consecutive operating surplus of $3.1 billion is forecast, up from the $2.6 billion surplus forecast in the 2024‑25 Budget
• Net debt now projected to be nearly $300 million lower than forecast in the 2024‑25 Budget
• Stronger financial capacity has enabled significant additional investment in housing, cost-of-living support and front-line services, particularly hospital services, child protection, and family and domestic violence services

Western Australian Treasurer Rita Saffioti has today released the 2024‑25 Mid‑year Review, revealing the State's economy and finances continue to lead the nation.

Following growth of 5.7 per cent in 2023‑24, Western Australia's domestic economy is expected to grow at 3.5 per cent in 2024‑25, up from the previous forecast of 3.25 per cent in the 2024‑25 Budget.

The projection continues the trend of Western Australia's domestic economy growing at more than double the national economy.

Growth projections for both Gross State Product and Employment have also been revised up compared to the 2024-25 Budget.

The growth in the Western Australian economy has been driven by strong business investment, rising at its strongest pace in 12 years, resilient household consumption, and robust population and employment growth.

The continuing strength of the domestic economy has led to an upward revision of the general Government operating surplus, which is now forecast to be $3.1 billion for 2024‑25, up from $2.6 billion projected in the 2024‑25 Budget. Consistent with the Budget‑time projections, surpluses are also expected in each of the outyears.

Total public sector net debt is projected to be $32.4 billion at 30 June 2025, a reduction of $289 million compared to the 2024‑25 Budget forecast, while net debt over the forward estimates is also projected to be $1.3 billion lower than forecast in the 2024‑25 Budget.

At just 6.2 per cent of Gross State Product, Western Australia has by far the lowest debt burden in the nation, and significantly below the 14.4 per cent left by the previous Liberal and National Government.

Western Australia remains the only State or Territory with a triple‑A credit rating from both S&P Global and Moody's Investors Services.

The Cook Labor Government continues to leverage its strong financial position to provide the infrastructure and services needed to support Western Australia's growing population and economy.

A record $42.4 billion Asset Investment Program has been maintained over the four years to 2027‑28, peaking at $12.5 billion in 2024‑25.

Key new investments in this Mid‑year Review include:

• a further $1.3 billion to boost housing supply and improve affordability;
• an additional $1.5 billion on health services, including $930 million for hospital services, supporting higher activity due to our expanding population;
• $1.2 billion of additional spending on education and training, including Better and Fairer Schools Agreement initiatives with the Commonwealth;
• $500 million to progress the Clean Energy Link-North project and $438 million for Synergy to progress the King Rocks Wind Farm, to support decarbonisation of the State's energy system;
• $1.6 billion of additional investment in transport infrastructure, including $654 million for the High Capacity Signalling program and $273 million for Westport project planning and land acquisitions;
• a further $86 million of spending on family and domestic violence initiatives, and $31 million to boost the child protection workforce by 55 workers over the next two years; and
• $70 million of additional cost-of-living relief measures, with more than $1.1 billion of support provided in 2024‑25.

The Mid‑year Review is available from the Department of Treasury website at: www.wa.gov.au/organisation/department-of-treasury

Comments attributed to Treasurer Rita Saffioti:

"In the face of global uncertainties and headwinds, this Mid‑year Review highlights Western Australia's continued resilience, as our economy outperforms the rest of the nation.

"The Cook Labor Government's strong financial management has allowed us to maintain our record investment in infrastructure and housing, along with new energy decarbonisation initiatives.

"We are supporting Western Australians and our growing population with major funding boosts in key areas, including $1.5 billion of new investment in health services, $1.3 billion of new investment to boost housing supply and an additional $70 million in cost-of-living initiatives, which takes our overall investment in cost-of-living support to more than $1.1 billion this year.

"At the same time, we are maintaining the most affordable levels of net debt in the nation.

"The Liberals and Nationals left our State with the worst set of books in the country, but our Government has driven debt down and positioned our State to have what are now the strongest economic and financial numbers in the nation."