Economy of Western Australia

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The Western Australian economy is largely commodity driven, given its relatively small population and being rich in land resources. The state is the largest in area and occupies about one-third of Australia. It has a geographic area of 2.5 million square kilometers, but is mostly arid and sparsely populated.

In 2003-04, Western Australia’s Gross state product was A$89.2 billion, which represented 11.3% of Australia's national economy. However, the state has only 9.8% of the country's population, and in per capita terms, it was the most productive State with a per capita income of $45,277 in 2003-04 compared with the national figure of $39,234.^[1] For many years, until the gold rushes of the 1890s, the state lagged badly largely due to a fairly flat population growth rate. This was alleviated somewhat by the arrival of convicts in 1850.

Contents 1 Foundation (1829 to 1850) 2 Convictism and the gold boom (1850 to 1913) 3 World Wars and Depression (1913 to 1946) 4 Post War era (1946 to present) 5 Western Australian economy today 6 References

[edit] Foundation (1829 to 1850)

The British Government founded the Swan River Colony in 1829 with the intention of establishing the colony with an agricultural and pastoral base. The poor quality land - particularly in the region in close proximity of the coast - and an inadequate labour supply and infrastructure hindered the expansion of the economy.^[2].

[edit] Convictism and the gold boom (1850 to 1913)

Main articles: Convict era of Western Australia and Australian gold rushes

The Swan River colony was not intended to be a penal colony but, in 1848, the introduction of convicts from Britain was sought to provide a labour pool and an income source from the British government. These were to be males, so an immigration program was also funded to redress gender imbalance. Prior to this, population and the economy had stagnated. By 1870 the european population had tripled and was reaching 20 000, around half of these were convicts. This allowed the establishment of smaller industries and reduced the reliance on imports. The new labour pool was utilised in new Public Works. The colony began attaining a greater level of financial independance.

The discovery of gold in this period also increased the population. Migration from the eastern states, where a post gold rush economic slump existed, and from overseas increased sharply. While much of the revenue generated was retained by the British crown, some was directed toward creating infrastructure in the state. New towns, Coolgardie and Kalgoorlie, were established at the goldfields and the remote northern town of Roebourne and its port Cossack were boosted by the associated economic boom. The city of Perth and the port of Fremantle, Western Australia were also invigorated by the new economy. Slave labour gave many new industries, such as pearling in the northwest an initial boost.

[edit] World Wars and Depression (1913 to 1946)

[edit] Post War era (1946 to present)

[edit] Western Australian economy today

Western Australia's has grown faster than Australia as a whole, with the Gross state product expanding by approximately 4.75 per cent[1] in the 2005-6 financial year. This is compared to the national growth rate of 3.2 per cent. Most of the state's growth comes from business investment, with strong demand on the resources sector being ensured from China's emerging economic might. With employment growth at unprecedented levels, the jobless rate is expected to be around 4.25 per cent compared to 5.25 per cent for the national average.[2]

[edit] References

1. ^ An Economic History of Western Australia since Colonial Settlement. Department of Treasury and Finance (2004). Retrieved on October 1, 2006.
2. ^ Ye Qiang. The Nature Of The Western Australian Economy. The University of Western Australia, Department of Economics. Retrieved on October 1, 2006.