WA’s decision to lock out travellers during the COVID-19 pandemic helped the state’s economy prosper and grew household income, modelling suggests.

July 19, 2023

The mining sector, international trade and tough border controls helped Western Australia’s economy thrive during the COVID pandemic, a new report says.

WA’s economic resilience was the envy of other states, with goods exports in 2021-22 accounting for 59 per cent of the gross state product.

National exports contributed 23 per cent to the Australian economy over the same period.

WA’s international trade benefited families through higher salaries, more jobs and lower prices, adding $16,200 to the average household’s overall income in 2022, the Bankwest Curtin Economics Centre modelling found.

“The relative scale of WA’s export sector emphasises just how much the state benefits from – and depends on – its economic relationships with trading partners,” director Alan Duncan said.

“Its resilience through the COVID pandemic owes much to border protections that allowed mine sites and ports to maintain production cycles.”

The free trade agreements Australia has signed with countries including China, Japan and the USA have led to huge financial gains for exports, the report said.

It also highlighted growing protectionism among trading partners, which poses risks to export-oriented states such as WA.

The centre is calling for increased export diversification to meet the world’s decarbonisation agenda.

Professor Duncan said WA was in an enviable position to capitalise on green opportunities if industry, housing and infrastructure developed.

“We need to diversify our export products and export markets to meet global demands in renewable energy and decarbonisation technologies,” he said.

This would require distinctive and high-value-added goods and services.

“If we get it right, Australia is in a tremendous position to benefit from the changing face of global trade,” Prof Duncan said.

The report recommended that businesses continuously search for new markets and trade opportunities, and endeavour to upskill workers and technological capabilities.

Policy and infrastructure supports were also needed to ensure WA benefited from the global green transition.