Strength of WA economy on display in 2023-24 Mid Year Review

• The Western Australian economy grew by 3.5 per cent in 2022‑23 - the strongest rate of growth in nine years
• 2023‑24 operating surplus forecast at $3.7 billion, driven by stronger than expected domestic economy and an elevated iron ore price
• Forecast net debt of $27.2 billion for 2023-24, $2.2 billion lower than forecast in the 2023‑24 Budget - the fifth consecutive annual decline despite record infrastructure spend
• Mid-Year Review includes significant new spending on public sector wages, energy and water infrastructure, health and key community services

The 2023-24 Mid‑Year Review released today shows that the Western Australian economy continues to go from strength to strength, with the strongest economic growth in nine years in 2022-23.

This economic growth has been underpinned by a strong domestic economy, with State Final Demand now forecast to grow by 4.5 per cent in 2023‑24 - up from 3 per cent growth forecast at Budget and building on the 3.8 per cent growth recorded for 2022‑23.

A $3.7 billion net operating surplus is now forecast for 2023‑24, up from $3.3 billion in the 2023‑24 Budget, which is being invested in new infrastructure essential for the State's future.

Total public sector net debt is now expected to be $27.2 billion at 30 June 2024, $2.2 billion lower than forecast at Budget-time, despite record infrastructure spend. This is the fifth consecutive annual decline in net debt.

This continued strong economic and financial performance allows the Cook Labor Government to invest in services and infrastructure that matter to Western Australians, and will secure the future of our State.

Major investments in the Mid‑Year Review include:

• the $2.8 billion Alkimos Seawater Desalination Plant and more than $700 million to upgrade the State's main electricity network and unlock renewable generation opportunities;
• $2.8 billion provision for the Government's new principles‑based Public Sector Wages Policy;
• $626 million of additional investments into the health system; and
• new spending on key services, including supporting children in care, accommodation and outreach services for people experiencing homelessness, family and domestic violence initiatives, and a range of measures to boost housing supply.

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:

"The Cook Labor Government continues to deliver strong and sustainable financial results, with an outlook for unbroken operating surpluses and record investment in infrastructure for the State's future, while continuing to pay down debt.

"The Mid-Year Review also highlights the continued strength of the WA economy despite volatility in the global economy, with a record number of Western Australians employed, strong business investment and resilient household consumption. This was evidenced earlier this month when the new State Final Demand data showed WA continues to power the nation on all fronts.

"Our strong financial management puts us in an enviable position, where we continue to invest back into the community with record spend in our infrastructure plus investment in key services, while also being able to respond to challenges as they arise without compromising our bottom line.    

"Our position continues to make WA an attractive place to live, invest and do business, with fair and reasonable pay rises and conditions for public sector workers, major investment in key services like health, mental health, housing and homelessness, as well as new infrastructure to support our growing population and economy."