Western Australia’s economy is continuing to bounce back solidly behind its hard border, with new Australian Bureau of Statistics (ABS) data released showing 88 per cent of jobs in the State lost due to COVID-19 were recovered by August 22 2020.
COVID-19 is keeping property industry confidence at a near-record low level despite an improvement in sentiment for the September 2020 quarter.
“Building approvals in May (2020) fell by 16.4 per cent nationally as the impact of COVID-19 restrictions impeded the flow of new building projects to be undertaken”, stated HIA Economist Angela Lillicrap.
Western Australia’s home building sector will recover over the coming twelve months, according to a new forecast, said HIA WA Executive Director Cath Hart.
“The number of loans to owner occupiers for established homes fell by 6.3 per cent during April 2020,” commented HIA Chief Economist, Tim Reardon.
“In a quarter that largely preceded the COVID-19 disruption, residential building activity chalked up the sixth consecutive quarterly contraction in the volume of building work done. The persistent credit squeeze throughout 2019 contributed to home building activity dropping back to levels last seen in 2014,” said Tim Reardon, HIA Chief Economist.
The value of Aussie agricultural production is forecast to remain high despite bushfires and prolonged drought, with overseas demand balancing drought-related falls in farm output and incomes.
The Australian economy grew 0.5 per cent in seasonally adjusted chain volume terms in the December quarter 2019 and 2.2 per cent through the year, according to the Australian Bureau of Statistics (ABS).
HIA is fully supportive of the Government’s rescue package for small business and is confident it will be passed through parliament without delay.
“The additional economic measures being announced by the Federal Government today (March 22 2020) are a timely and welcome response to the rapidly escalating challenges facing Australian businesses and households,” Innes Willox, Chief Executive of the national employer association Ai Group said.