Extraordinarily, S&P rated the WA economy as the best performing state in the world.
S&P are a global credit ratings agency which assess economic performance of states, among other things.
The second best performing state in the world was North Rhine Westphalia in Germany, which WA performed significantly better than.
The next best Australian state was Queensland.
The news comes after WA recently recorded a massive 1.5% quarterly growth.
WA’s strong performance can be credited to a rising iron ore price as well as the obvious reason: WA has been significantly less affected by the global pandemic due to tight border controls.
The report can be found on the S&P website here behind a registration wall.
Significantly for businesses, consumer confidence is the highest since March 2010.
An 11 year high in confidence means more spending, which means better business conditions.
That’s great news for business owners feeling unsure about the future after the uncertainty of 2020.
Also significant is that 60% of people expected the WA economy to keep improving.
When people expect the economy to improve, it tends to become a self fulfilling prophecy, as they invest more so the economy does improve.
After a number of years of a slowing economy, and even periods of economic retraction, being the leading economy in the world is music to the ears of many WA businesses.
Here at LGAS we have been saying there is cause for optimism for the future for months now.
We have anecdotally seen fantastic signs with our clients.
So the having the confirmation from global analysts S&P that not only is there cause for optimism, but that we have more reason to be optimistic than anywhere in the world, is great news the optimism isn’t just with our clients.
The business optimism is spreading in WA and we are looking forward to further improving conditions throughout the year.
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