Premier Mark McGowan has foreshadowed a grim outlook for Western Australia’s economic system as he introduced a $1.8bn surplus for the subsequent yr.
The projected web working surplus revealed on the mid-year financial evaluation is much decrease than the document $6bn surplus in 2021-22.
Mr McGowan mentioned it was partly attributable to a decrease iron ore worth, the affect of the state authorities’s wages coverage, spending carried over from the earlier yr, and extra sources for precedence companies and infrastructure initiatives.
The Covid-19 pandemic and state of affairs in China have been additionally elements.
“They (China) purchase a lot of our products for their property sector … the predictions there are fairly stark in terms of decline in activity,” Mr McGowan informed reporters on Thursday.
Mr McGowan mentioned the worldwide financial outlook had deteriorated and there was a probability of a recession subsequent yr attributable to climbing rates of interest, a “hangover” from Covid-19 and spending patterns the world over.
“It’s anticipated to be a difficult period in the year or so ahead,” he mentioned.
WA’s economic system is forecast to develop by three per cent this yr, up from two per cent predicted on the May funds.
Unemployment is tipped to common 3.5 per cent in 2022-23, down from 3.75 per cent forecast on the funds.
Net debt is forecast to stay comparatively steady over the ahead estimates, having been revised down by $1.5bn to a projected $29.6bn by June.
The mid-year evaluation additionally included a $35bn infrastructure program by way of to 2026.
An further $667m has been put aside for Perth’s third desalination plant.
The struggling well being system will even get a $511.5m injection to attach sufferers with specialist care and for extra initiatives to enhance affected person circulation in emergency departments.
It additionally consists of funding for well being and medical analysis, ICT initiatives to deal with cyber safety, and funding for the Bunbury Hospital redevelopment.
