Page 1421 - Week 04 - Wednesday, 28 March 2012
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We have the highest average weekly earnings—15 per cent higher than the national average. Western Australia is also receiving a significant boost as a result of the mining boom, but the fact that the ACT is still performing so strongly is a very clear recognition of the strength of the local economy and the importance of the partnership between the public and private sectors.
The ACT economy has performed very well in recent years. This has been against the backdrop of a very challenging global economic and financial environment. In the 2010-11 fiscal year we recorded strong economic growth, solid employment growth and robust population growth. Our gross state product grew by 2.8 per cent in real terms, outstripping the national gross domestic product growth of 2.1 per cent. In per capita terms the ACT GSP increased by 0.9 of one per cent, compared to 0.6 of one per cent nationally. The ACT continued to record the highest household disposable income per capita of $65,971. This is 63.5 per cent higher than the national average of $40,360.
The ACT has benefited from strong investment growth due to the ACT government’s record capital works program, very strong commonwealth investment and, most significantly, robust private sector investment. These were all important contributors to state final demand growth in the year.
The year-on-year growth in state final demand to the December quarter 2011 was 2.8 per cent in original terms. Population growth increased by 1.9 per cent in the 2010-11 fiscal year, reflecting an increase in all components of population growth; namely, natural growth, interstate migration and overseas migration.
Despite the higher interest rates that prevailed in the 2010-11 fiscal year and at the start of 2011-12, and reduced grants to first home buyers, the local housing market continues to perform well compared to other jurisdictions. In recognition of this, Standard & Poor’s credit rating agency reaffirmed the ACT’s AAA long-term credit rating and our A-1-plus short-term local currency credit ratings on 7 December 2011. Indeed I remind those opposite that this is the highest rating possible assigned by the ratings agency.
In their press release, Standard & Poor’s said that the ACT economy is strong with very high per capita incomes. They said the commonwealth government’s presence was a strength because it supports a young and well-educated population that contributes to strong workforce participation. Standard & Poor’s stated:
… we believe that the ACT’s long-term growth prospects are steady and note that average incomes are considerably higher than the national average.
They also noted the ACT’s strong financial management.
MR SPEAKER: Ms Porter, a supplementary question.
MS PORTER: Treasurer, can you outline any long-term challenges facing the economy and are you aware of alternative economic analysis?
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