Western Australia (WA) is the largest state in Australia covering an area of 1,021,478 sq miles. It is bordered by South Australia and Northern Territory to the east, and the Indian Ocean to the west and north. It has a population of 2,236,900 inhabitants, with majority of them residing in the south-west corner of the state. Perth is WA’s capital and largest city. Local populace here is informally referred to as ‘Sandgropers,’ which also happens to be the name of a common insect found on Perth sand dunes. The southwest coastal regions of Western Australia enjoy a Mediterranean climate, while the northern tropical region such as Kimberley has to put up with extremely hot monsoon type climate.
Economy: The foundation of WA’s economy rests on mining and related industries, exports, agriculture and tourism. Let’s check out briefly the major components of its economy.
Mining & Petroleum Production: Extraction and processing of a wide range of mineral and petroleum commodities forms the bulwark of WA’s economy. The state has an abundance of natural resources, which in turn augments resource extraction and processing. Due to this major advantage, the economy here is more capital intensive than other states of Australia. Its Gross State Product (GSP) is higher than other states, in-fact above the national average. By regularly producing a diverse range of commodities WA ensures a more balanced production base and less dependence on only a few major export markets, thereby protecting its economy from global price fluctuations. Global demand for minerals and petroleum products particularly from China and Japan has also ensured economic growth much above the national average.
Exports: WA’s major export commodities comprise of iron-ore, aluminum, crude oil & Liquefied Natural Gas (LNG), nickel, gold, ammonia, wheat, wool, and live sheep and cattle. Bauxite is also extracted on a large scale in the state, which is then processed into alumina at three refineries here, accounting for more than 20% of total world production. Producing 15% of the world’s total iron ore, it is the world’s third-largest producer of the same. Other natural resources mined are gold, diamonds particularly in the Kimberley region and coal which is the main source for electricity generation in the state.
Agriculture: Agricultural production is a significant contributor to the state and Australian economy. The major farm outputs here include wheat, barley, peas, wool, lamb and beef. There is huge demand from overseas buyers for live cattle stock from WA particularly South East Asia and Middle East. In fact, nearly half of Australia’s live cattle exports come from WA. It also has a major fishing industry; with products for local consumption and export consisting of lobsters, prawns, crabs, shark and tuna.
Tourism: This segment has been growing quite significantly in Western Australia, with the number of tourists and visitors increasing annually. Majority of the visitors to WA are those coming from Britain, Ireland, European countries like Singapore, Japan and Malaysia. Income generated from tourism is a strong economic driver in many of the lesser populated regions outside of Perth, particularly in the coastal belts.