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$5.5 billion COVID-19 economic recovery plan announced for WA

Economy
27 July 2020 15:37 (AEDT)

Source: WA Government

Western Australians will soon benefit from billions of dollars of extra government spending, aimed at helping the state’s economy recover from the coronavirus pandemic.

The WA Government yesterday announced a $5.5 billion recovery plan, which will create a “pipeline of jobs”.

“This is all about getting Western Australians back to work and our state back on track,” said Premier Mark McGowan.

“It will deliver a pipeline of short and long-term jobs for Western Australians, supporting and strengthening our existing industries, as well as laying the foundation for jobs of the future,” he added.

It was predicted back in May that the coronavirus pandemic would send WA’s economy into recession in the 2021 financial year.

The state economy is expected to contract by 3.1 per cent over the next 12 months, a hit of around $12 billion.

In order to mitigate the effects of the virus, the State Government announced the multi-billion-dollar recovery plan.

Of the $5.5 billion announced, $2.77 billion has already been spent on relief and stimulus measures, including a freeze on household fees, a home-building grant and extra funding for the tourism and arts sector.

The rest of the money will be spent on job-creation, including fast-tracking maintenance upgrades on Government facilities and a renewable energy package.

The full list of measures will be announced in the coming days on https://inthistogether.wa.gov.au/.

Most of the other state and territories across Australia have also announced economic support plans as unemployment skyrockets.

The jobless rate hit 8.7 per cent in WA last month, the second-highest in the nation, while across Australia, the unemployment rate currently sits at 7.4 per cent.

In response, the Federal Government has extended its support for workers who lost their jobs due to COVID-19, or had their hours reduced.

However, while the programs will be extended beyond the end of September, the amount of support will be scaled back by $300.

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