21 Jul 2008

WA tipped to be Australian powerhouse

6:36 pm on 21 July 2008

A report by forecasting firm Access Economics predicts Western Australia will grow by 6% in the next 12 months to become the fastest-growing economy in Australia.

It says flat housing prices and rising interest rates have slowed retail spending, and a gas crisis has had a significant impact, but it is a short-term problem.

On the plus side, the report says there are massive projects planned or under way for the mining and energy sectors, and strong demand for resources will result in the state outperforming the rest of the country.

While the state's resources perfectly match Asia's rapid industrialisation, Access Economics says any slowdown in the region could bite hard, turning boom into bust.