The Mid-year Review shows that Western Australia’s domestic economy (excluding exports and imports) is performing better than expected at the time of the 2023-24 Budget. State Final Demand is now forecast to grow by 4.5% in 2023-24 – up from 3% growth forecast at Budget, and building on the 3.8% growth recorded for 2022-23. The State’s labour market also remains strong, with a record number of people in employment and the unemployment rate for 2023-24 revised down to 3.75% (from 4% at Budget).
The stronger State economy and an elevated iron ore price have resulted in a stronger revenue outlook relative to the 2023-24 Budget. The Government is investing the additional revenue in new infrastructure essential for the State’s future, key service delivery priorities, and fair and reasonable pay rises for the State’s public sector workers under the Government’s new principles-based Public Sector Wages Policy.
A $3.7 billion general government operating surplus is now forecast for 2023-24 (up from $3.3 billion at Budget), and operating surpluses are also forecast over the outyears.
Total public sector net debt is now expected to be $27.2 billion at 30 June 2024, $2.2 billion lower than forecast in the 2023-24 Budget. This is the fifth consecutive annual decline in net debt, despite record investment in the State’s infrastructure.
