Despite significant global headwinds, Western Australia's economy remains the strongest in the nation.
Global conditions are increasingly uncertain. Conflict in the Middle East has disrupted commodity and financial markets, while ongoing geopolitical tensions, uncertainty around US trade policy, and slowing growth in China are weighing on the global economy.
The IMF has revised global economic growth down to 3.1 per cent and inflation up to 4.4 per cent in 2026, and Australia is not immune.
Despite these pressures, Western Australia's experienced leadership has ensured our economy remains resilient.
- Labour market conditions remain strong, with more Western Australians in work than ever before and over 380,000 jobs created since 2017, while unemployment remains low.
- State Final Demand has been revised up to 3.5 per cent in 2025-26, building on 27 per cent growth over the last five years - driven by sustained private sector activity across business, household and dwelling investment, as well as household consumption.
- WA accounts for over 45 per cent of national exports, growing to $238.4 billion over the year to February and far outpacing the next closest State.
The 2026-27 Budget reinforces our Government's commitment to responsible financial management, balancing affordable debt with continued investment in the future.
This Budget includes:
- Operating surplus of $3.5 billion in 2025-26, with surpluses each year across the forward estimates.
- A record $44.3 billion investment in infrastructure over the next four years to deliver our biggest ever housing and hospital construction programs.
- Net debt remains the most affordable in the country at 7.1 per cent of GSP in 2025-26, and more than $9 billion lower than projected when WA Labor came to office.
- WA remains the only state in the county with triple-A credit ratings from both major rating agencies.
- We continue to fight for our fair share of the GST - which remains lower than any other State has ever received, while still contributing around $2.7 billion in 2025-26 to other States through the GST.
- New measures to safeguard our finances to ensure we can continue to invest in the services and infrastructure Western Australians expect.