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WESTERN AUSTRALIA ECONOMIC PROFILE – August 2012
Western Australia’s economy was valued at $217 billion in 2010-11. It grew 3.5% in real terms in
2010-11, below its annual average of 4.4% over the past five years. Growth in 2010-11 was mainly
driven by increased business investment, household consumption and mining activity. The State had the
highest per capita gross state product of $93,593, 50% higher than the national average of $62,424.
Contribution to Australian economy: 2010-11 Western Australia accounted for 16%
of the Australian economy in
South Tasmania
Australia
Territories 2% 2010-11, above its 10% share of the
3%
6% national population.
Western
Australia New South The State contributed 24%
16% Wales ($49 billion) of Australia’s business
31%
investment in 2010-11.
Western Australia contributed 46%
Queensland ($113 billion) of Australia’s
19% Victoria merchandise exports in 2010-11,
23%
more than New South Wales, Victoria
and Queensland combined.
Source: ABS 5220.0 State Accounts.
Gross state (domestic) product growth Western Australia’s gross state
8% product (GSP) rose 3.5% in 2010-11,
down from 4.3% growth in 2009-10.
6.2%
6.2%
6%
5.8% 6.0%
Australia’s gross domestic product
4.9% 4.8% 4.8%
(GDP) rose 2.1% to $1,401 billion in
4.0% 3.9%
4.3% 2010-11.
4%
3.0%
3.5%
Western Australia’s GSP is forecast
to rise 6.0% in 2011-12 and 4.75% in
2% 2012-13 according to the Western
Australian Budget 2012-13.
0%
Australia’s GDP is forecast to rise
2001-02 2004-05 2007-08 2010-11 3.0% in 2011-12 according to the
Australian Budget 2012-13.
Western Australia Australia
Note – Forecasts start in 2011-12 for Western Australia and Australia.
Source: ABS 5220.0 State Accounts; ABS 5204.0 National Accounts; and WA and Australian Treasury.
Selected components of GSP growth Mining industry activity (value added)
6%pts rose 6% in 2010-11, contributing
1.6 percentage points to GSP growth.
4%pts
Business investment rose 13% in
2010-11, contributing 3.0 percentage
points to GSP growth.
2%pts
Merchandise exports rose 1% in
2010-11, contributing 0.6 percentage
0%pts points to GSP growth.
Business investment and
merchandise exports are expected to
-2%pts
2008-09 2009-10 2010-11 rise 23.5% and 7.5% respectively in
2011-12, according to the Western
Mining industry Business investment Merchandise exports
Australian Budget 2012-13.
Source: ABS 5220.0 State Accounts.
Page 1 of 10
Population and labour market
Western Australia has 33% of Australia’s land area, but only 10.4% of its population. The State’s share of
the national population is projected by the ABS to grow to 11% (3.0 million) by 2026 and 12% (4.3 million)
by 2056. There were 1.28 million people employed in Western Australia in July 2012. The Department of
Training and Workforce Development estimates a potential shortfall of 76,000 workers by 2014-15.
Population growth Western Australia’s population rose
80,000 4% 2.9% (67,420) to 2,387,232 in
2011.
60,000 3% Net overseas migration contributed
58% (39,306) of the population
40,000 2%
growth in 2011.
20,000 1% Population growth accelerated from
2.2% in 2010 to 2.9% in 2011.
0 0%
-20,000 -1%
2002 2005 2008 2011
Net overseas migration Natural increase
Net interstate migration Population growth rate (%)
Source: ABS 3101.0 Australian Demographic Statistics.
Employment growth and unemployment rates Employment in Western Australia
8% rose 3.4% (42,300) over the twelve
months to July 2012, with only 6% of
6% the growth occurring in the past three
months (up 0.2% or 2,700).
4%
Australia’s employment rose 0.6%
2%
(66,000) over the year to July 2012.
The State’s unemployment rate was
0% 3.6% in July 2012; higher than the
3.5% in the previous month, but lower
-2%
Jul-03 Jul-06 Jul-09 Jul-12
than the 4.0% a year earlier. The
Employment growth (12 months) Unemployment rate
national unemployment rate was
Aust unemployment rate
5.2%.
Western Australia’s mining industry
Source: ABS 6202.0 Labour Force.
employed 114,800 workers directly in
the June quarter 2012, 30% (26,800)
more than a year earlier.
Major industries: 2010-11 Mining accounted for 33%
($71 billion) of Western Australia’s
32.8%
Mining 7.1% GSP and 7% (86,375) of total
11.7%
Construction 10.9% employment in 2010-11.
Retail trade 3.1%
10.4% Construction accounted for 12%
3.6%
Health care & social assistance 9.7% ($25 billion) of GSP and 11%
Manuf acturing 5.4%
7.3%
(133,525) of total employment in
Prof essional, scientif ic & technical 5.0%
7.2%
2010-11. It was the largest employer
Education & training 2.8% ahead of retail trade (10.4%).
7.8%
Transport, postal & warehousing 5.2% Manufacturing (5.4%), transport,
4.7%
postal and warehousing (5.2%) and
0% 10% 20% 30% 40%
professional, scientific and technical
Share of GSP Share of total employment
services (5.0%) were other major
contributors to GSP.
Source: ABS 5220.0 State Accounts; and ABS 6291.0.55.003 Labour Force.
Page 2 of 10
Investment
Business investment in Western Australia increased 28% in real terms in 2011, well above its 13%
annual average growth over the past five years. The State accounted for 26% of Australia’s business
investment in 2011 and had 52% of Australia’s total value of resource projects under construction or
committed in April 2012, according to the Bureau of Resources and Energy Economics.
Business and mining investment Business investment in Western
$60b 30% Australia rose 27% in nominal terms
to $56 billion in 2011.
The value of private new capital
1
$40b 20% expenditure of selected industries
rose 37% to $45 billion in 2011 (33%
of the Australian total). It is expected
$20b 10% to rise to $61 billion in 2011-12 and
$79 billion in 2012-13, 37% and 46%
of the national total respectively.
$0b 0% The value of new capital expenditure
2002 2005 2008 2011
by the mining industry rose 44% to
Business investment
Mining industry new capital expenditure $36 billion in 2011 (56% of the
Share of Aust business investment (%) Australian total). It is expected to rise
1
Excludes new capital expenditure in the industries of agriculture, forestry and fishing; public administration and safety;
education and training; health care and social assistance; and superannuation funds. to $51 billion in 2011-12 and
Source: ABS 5206.0 National Accounts; ABS 5220.0 State Accounts; and ABS 5625.0 Private New Capital
Expenditure. $72 billion in 2012-13, 54% and 60%
of the national total respectively.
Engineering construction The value of engineering construction
$80b work done rose 32% ($8 billion) to
$32 billion in Western Australia in
2011.
$60b
The volume of engineering
construction work done rose 30% in
$40b Western Australia in 2011.
The State had $64 billion of
$20b engineering construction work in the
pipeline at the end of 2011, mainly
$0b
comprising the $43 billion Gorgon
2002 2005 2008 2011 LNG project.
Value of work done Value of work in pipeline
Source: ABS 8762.0 Engineering Construction Activity.
Major resource projects ($billion): March 2012 In March 2012, there was $167 billion
Commodity Under Under of resource projects under
1
construction/committed consideration construction or committed in Western
Alumina 3.4 - Australia and a further $151 billion
Gold 1.0 0.6 under consideration.
Iron ore 30.2 40.2 There was $105 billion of oil and gas
Nickel 0.1 6.7 projects under construction or
Crude oil 0.5 1.8 committed and $83 billion under
LNG 98.2 77.2 consideration.
Gas 6.6 3.0 There was $61 billion of minerals
2
Other 26.8 21.8 projects under construction or
Total 166.7 151.4 committed and $68 billion under
1
Yet to reach a final investment decision.
2
Includes minerals and oil and gas infrastructure.
Source: Department of Mines and Petroleum, Resource Statistics.
consideration.
Page 3 of 10
Investment continued
Major selected resource projects: August 2012
Construction Operational
Projects $ billion Mtpa (target) jobs jobs Start up
Iron and steel
Rio Tinto – Pilbara 283 Iron Ore Expansion 10.2 53 n.a. n.a. 2013
Hancock Prospecting – Iron Ore Mine &
9.5 55 8,500 2,000 2014
Infrastructure – Roy Hill
CITIC Pacific – Sino Iron – Cape Preston
8.1 24 (70) 3,500 800 2012
Mine & Processing
Fortescue Metals Group – Central Pilbara -
1 7.0 200 4,800 2,650 2015
Solomon 2 & Western Hub
Rio Tinto – Pilbara 353 Iron Ore
1 6.1 70 n.a. n.a. 2015
Expansion
Oil and gas
Gorgon JV Gas Processing Plant 43.0 15.6 (25) 5,000 300 2014
1
Browse LNG Precinct 30.0 12 (50) 8,000 600 2017
Chevron – Wheatstone LNG 29.0 8.9 (25) 5,500 400 2016
Inpex/Total – Ichthys Gas Field 15.3* - (8.4 NT) 1,000 400 2016
Shell – Prelude Floating LNG Plant 13.1 3.6 n.a. 350 2016
Other projects
1
Oakajee Port, Rail & Industrial Estate 5.9 45 (100) 2,500 250 2015
1
Anketell Port & Strategic Industrial Area 4.0 100 (350) n.a. n.a. 2014
1
Under consideration.
Mtpa - Million tonnes per annum.
Exchange rate conversion = $US1.0362 (2011-12 average).
* DSD estimate.
Source: Department of State Development, Prospect Magazine; Deloitte Access Economics, Investment Monitor; WA Chamber of Commerce and Industry, Resource and Energy Projects Service; Bureau of
Resource and Energy Economics, Mining Industry Major Projects; Australian Securities Exchange (Announcements); Intierra Database; and project proponent reports and presentations.
Minerals and petroleum exploration Minerals exploration expenditure rose
$3b
30% ($424 million) to $1.8 billion in
Western Australia in 2011 (51% of the
Australian total).
$2b
Iron ore exploration rose 60%
($300 million) to $802 million in 2011.
Gold exploration rose 21%
$1b ($87 million) to $499 million in 2011.
Petroleum exploration expenditure fell
6% ($150 million) to $2.3 billion in
$0b 2011 (71% of the Australian total).
2002 2005 2008 2011
Petroleum exploration drilling rose
Iron ore Gold Other minerals(a) Petroleum 10% to 132,483 metres in 2011
(a) Includes copper, silver, lead, zinc, nickel, cobalt, mineral sands, uranium, coal, diamonds, tin, tungsten, scheelite,
(APPEA).
wolfram and construction materials.
Source: ABS 8412.0 Minerals and Petroleum Exploration.
Page 4 of 10
Commodities
The value of Western Australia’s minerals and petroleum production rose 16% to $107 billion in 2011.
Treasury forecasts a 32% rise in iron ore production from 499 to 659 million tonnes (Mt) between
2012-13 and 2015-16. LNG production is expected to grow from 16 Mt in 2011 to a capacity of around
45 Mt in 2016. Mining royalties grew 37% to $5.3 billion in 2011, with iron ore royalties rising 58% to
$3.8 billion (72% of total mining royalties) while petroleum royalties fell 4% to $949 million (18%).
Export prices and exchange rate Australia’s non-rural commodity price
800 $US1.2 index rose 3% in $A and 7% in $US
in 2011-12, compared with growth of
600 29% ($A) and 45% ($US) in 2010-11.
$US0.8 Metal ore export prices fell 3% in
400 2011-12, after rising 43% in 2010-11.
Crude oil export prices rose 12% in
$US0.4
200 2011-12, after rising 15% in 2010-11.
LNG export prices rose 28% in
0 $US0.0
2011-12, after rising 22% in 2010-11.
2002-03 2005-06 2008-09 2011-12 Gold export prices rose 18% in
Exchange rate Metal ores(a) Crude oil
2011-12, after rising 13% in 2010-11.
LNG Gold
Australia’s exchange rate rose 4% to
(a) Includes iron ore, copper ore, nickel ore, alumina, base metal ore and uranium ore.
$US1.04 in 2011-12, following a 13%
Source: ABS 6457.0 International Trade Price Indexes; and RBA Exchange Rates: Monthly. rise to $US1.00 in 2010-11.
Major commodity production The value of the State’s iron ore
production rose 29% to $63 billion in
$48.8b
Iron ore
$62.8b
2011 (59% of the total State value of
$12.0b
minerals and petroleum production)
Crude oil(a) and the quantity rose 8% to 427 Mt.
$12.0b
LNG
$8.8b The value of crude oil and
$9.3b
2010 condensate production rose 1% to
$7.8b
Gold
$8.8b
2011 $12 billion in 2011 (11%) and the
$4.0b
quantity fell 16% to 18 gigalitres.
Alumina
$4.1b The value of LNG production rose
Nickel
$4.3b 7% to $9 billion in 2011 (9%) and the
$3.9b
quantity fell 3% to 16 Mt.
$0b $10b $20b $30b $40b $50b $60b $70b The value of gold production rose
(a) Includes condensate.
Source: Department of Mines and Petroleum, Minerals and Petroleum Summary Tables.
12% to $9 billion in 2011 (8%) and
the quantity fell 2% to 180 tonnes.
World commodity production: 2011 Western Australia produced over a
Commodity WA Aust World
WA % fifth of the world’s iron ore (21%) in
of world 2011 and large shares of the world’s
Iron ore (Mt) 427 441 2,080 21 production of alumina (14%) and
Alumina (Mt) 12 19 87 14 nickel (13%).
Nickel (000t) 212 212 1,580 13 Western Australia produced all of
Garnet (000ct) 150 150 1,400 11 Australia’s nickel, garnet, diamonds
Zircon (000t) 106 762 1,442 7 and salt in 2011; 97% of the nation’s
LNG (Mt) 16 19 223 7 iron ore; and most of the nation’s
Gold (t) 180 258 2,763 6 LNG (85%), crude oil and
Ilmenite (000t) 726 1,277 11,310 6 condensate (77%), gold (69%),
Rutile (000t) 40 474 679 6 alumina (63%) and ilmenite (57%).
Diamonds (000ct) 7,562 7,562 144,000 5
Source: Department of Mines and Petroleum, Resource Data Files; and Bureau of Resources and Energy Economics.
Page 5 of 10
Commodities continued
Iron ore resources
Source: Department of State Development
Natural gas resources
Source: Department of Mines and Petroleum, Statistics Digest
Page 6 of 10
International trade
Exports of goods and services accounted for 55% of Western Australia’s GSP in 2010-11. Mining
industry exports totalled $111 billion in 2011; 92% of the State’s merchandise exports.
Contribution to Australian exports: 2011-12 Western Australia contributed 46%
South Territories ($121 billion) of Australia’s
Australia Other(a) 2% Tasmania merchandise exports in 2011-12,
4% 3% 1%
more than the share of New South
Victoria
8%
Wales, Victoria and Queensland
Western combined (44%).
New South
Australia
46%
Western Australia accounted for 15%
Wales ($35 billion) of Australia’s
16%
merchandise imports in 2011-12.
Queensland
20%
(a) Re-exports and state not available.
Source: ABS 5368.0 International Trade in Goods and Services; and ABS 5220.0 State Accounts.
Merchandise trade The value of the State’s merchandise
$150b 50% exports rose 8% ($9 billion) to
$121 billion in 2011-12.
The volume of exports rose 1% in
$100b 2010-11, following a rise of 8% in
25% 2009-10. Data is not yet available for
2011-12.
$50b
The value of the State’s merchandise
imports rose 35% ($9 billion) to
$0b 0%
$35 billion in 2011-12.
2002-03 2005-06 2008-09 2011-12
Exports - value Imports
Exports - volume Share of Aust exports (%)
Source: ABS 5368.0 International Trade in Goods and Services; ABS 5206.0 National Accounts; and ABS 5220.0 State
Accounts.
Major export commodities Iron ore exports rose 8% to $62 billion
in Western Australia in 2011-12; 51%
of State exports and 98% of national
iron ore exports.
Gold exports rose 16% to $16 billion
in 2011-12; 13% of State exports and
99% of national gold exports. Around
40% of those exports were from gold
mining operations in other parts of
Australia and overseas.
Crude oil and condensate exports
rose 1% to $11 billion in 2011-12; 9%
of State exports and 99% of national
crude oil exports.
(a) Includes condensate.
Source: Department of State Development, Trade Stats Database; and Department of Mines and Petroleum, Statistics
Digest.
LNG exports rose 17% to $9 billion;
8% of State exports and 78% of
national LNG exports in 2011-12.
Page 7 of 10
International trade continued
Major import commodities Gold imports rose 25% to $4.9 billion
in Western Australia in 2011-12 (14%
of total imports). The State refines
and re-exports gold that is produced
from mining operations in other parts
of Australia and overseas.
Crude oil and condensate imports
rose 8% to $4.2 billion in 2011-12
(12% of total imports).
Refined petroleum oil imports rose
43% to $3.5 billion in 2011-12 (10%
of total imports).
(a) Includes condensate.
Source: Department of State Development, Trade Stats Database.
Major trading partners: 2011-12 China was Western Australia’s largest
export market in 2011-12 ($55 billion
China $55.2b $3.8b or 46%), followed by Japan
($23 billion or 19%).
Japan $22.9b $3.4b China overtook Japan as the State’s
largest export market in 2006-07
Korea (Republic of) $9.9b $2.0b (2006).
The value of the State’s exports to
Singapore $3.6b $4.2b China rose 17% ($8 billion) in
2011-12 and exports to Japan rose
UK $5.1b $1.4b 11% ($2 billion).
Singapore was Western Australia’s
$0b $10b $20b $30b $40b $50b $60b $70b
largest source of imports in 2011-12
Exports Imports ($4.2 billion or 12.1%), followed by
Source: ABS 5368.0 International Trade in Goods and Services. the USA ($4.1 billion or 11.8%).
Major export commodity markets: 2011-12 China was the largest market for
Iron ore $ billion Gold $ billion Crude oil $ billion Western Australia’s iron ore exports
in 2011-12, valued at $42 billion or
China 42.3 UK 4.5 China 3.0 69% of total iron ore exports.
Japan 10.9 China 4.2 Singapore 1.8
Korea
1
6.5 India 3.0 Korea
1
1.2
The UK was the largest market for
Taiwan 1.8 USA 1.6 Japan 1.1 the State’s gold exports in 2011-12,
valued at $4.5 billion (29% of total
Total 61.5 Total 15.6 Total 11.1 gold exports).
1
Republic
China was the largest market for the
Note – Crude oil includes condensate. State’s crude oil exports in 2011-12,
Source: Department of State Development, Trade Stats Database.
valued at $3 billion (27% of total
crude oil exports).
Western Australia exported $9 billion
of LNG in 2011-12, mainly to Japan,
China and the Republic of Korea.
Page 8 of 10
International trade continued
Share of Australian exports by major export market Western Australia accounted for 72%
of Australia’s merchandise exports to
China
73% China in 2011-12, less than its 73%
72% share in 2010-11.
44%
Western Australia also had large
Japan shares of Australia’s merchandise
45%
2010-11 exports to Japan (45%), Republic of
47% 2011-12
Korea (45%) and India (30%) in
Korea (Republic of) 2011-12.
45%
40%
India
30%
0% 20% 40% 60% 80%
Source: ABS 5368.0 International Trade in Goods and Services.
1
Exports by major port The value of exports from
Port Dampier rose 4% to $34 billion in
2011-12, accounting for 28% of
Western Australia’s exports.
The volume of exports from
Port Dampier rose 4% to 172 Mt in
2011-12.
The value of exports from
Port Hedland rose 13% to $31 billion
in 2011-12, accounting for 25% of
Western Australia’s exports.
The volume of exports from
Port Hedland rose 25% to 240 Mt in
2011-12.
1
Excluding Perth airport.
Source: ABS 5368.0 International Trade in Goods and Services.
Services trade Western Australia contributed 10.4%
$10b 12% of Australia’s services exports in
2011.
$8b Western Australia’s services exports
10% fell 3.1% ($169 million) to $5.2 billion
$6b in 2011, mainly due to a fall in
education-related personal travel to
$4b
8%
the State.
$2b
The State’s services imports rose
4.9% ($433 million) to $9.2 billion in
2011, mainly due a rise in
$0b 6%
2002 2005 2008 2011 non-education personal travel from
the State.
Exports Imports Share of Aust exports (%)
Source: ABS 5368.0.55.004 International Trade in Services by Country, State and Detailed Services Category.
Page 9 of 10
Regions
Regional commodity production ($ million)
Region 2010 2011 Main commodities (2011)
1
Pilbara 71,749 86,160 Iron ore (70%), crude oil (14%), LNG (11%)
Goldfields-Esperance 8,452 8,669 Gold (65%), nickel (32%)
Peel 5,046 5,391 Alumina (77%)
Mid West 2,646 2,537 Gold (31%), iron ore (28%)
Wheatbelt 1,950 2,421 Iron ore (49%)
Kimberley 1,006 1,159 Iron ore (50%), gold/silver/diamonds (31%)
South West 534 546 Coal (52%), heavy mineral sands (48%)
Gascoyne 141 118 Salt & gems (99%)
Perth 33 40 Construction materials, silica & limestone sand (100%)
Great Southern 4 7 Spongolite, silica & limestone sand (100%)
1
Includes offshore petroleum.
Source: Department of Mines and Petroleum, Statistics Digest.
Regional exports
2010-11 2011-12 2010-11 2011-12
Region and port
$ million $ million Mt Mt
1
Pilbara 76,231 81,747 448 504
Dampier 32,645 34,000 165 172
Port Hedland 27,298 30,929 192 240
Port Walcott (Cape Lambert) 9,842 9,777 81 82
Offshore WA ports 6,446 7,042 10 9
Perth 26,619 28,144 11 12
Perth airport 16,122 18,063 0 0
Fremantle 8,604 10,010 8 12
Kwinana 1,893 72 3 0
South West - Bunbury 4,032 4,258 11 11
Goldfields-Esperance - Esperance 2,553 2,596 11 11
Mid West - Geraldton 2,089 2,628 9 9
Kimberley – Yampi Sound, Wyndham & Broome 657 1,129 3 7
Great Southern - Albany 613 688 3 3
Gascoyne – Cape Cuvier & Useless Loop 115 119 4 4
1
Includes Offshore WA ports.
Note – Exports from the Peel and Wheatbelt regions are included in the exports of other regions, including Perth, South West and Mid West.
Source: ABS 5368.0 International Trade in Goods and Services.
1 2
Regional labour markets and population
Annual
Region Employed Unemployed Unemployment rate % Population
growth %
Perth 963,096 40,772 4.2 1,726,055 2.5
South West 90,447 4,150 4.6 158,615 1.6
Peel 49,369 2,769 5.6 112,677 4.4
Wheatbelt 45,092 1,188 2.6 72,856 0.0
Goldfields-Esperance 35,668 851 2.4 59,489 1.1
Great Southern 34,199 1,726 5.0 56,884 0.2
Mid West 30,637 913 3.0 55,609 1.2
Pilbara 27,511 633 2.3 62,736 6.5
Kimberley 18,124 962 5.3 37,673 2.9
Gascoyne 5,991 217 3.6 9,621 1.1
1
March quarter 2012.
2
2010-11.
Source: Department of Education, Employment and Workplace Relations, Small Area Labour Markets; and ABS 3218.0 Regional Population Growth.
Page 10 of 10
