By Adam Coleman
In its Business Outlook for December 2008, the forecaster suggests NSW is already in recession and that Western Australia will follow suit as one of the states to be hit hardest by the global economic downturn.
According to the report, “WA is now eating its way through the pipeline of construction started during the boom” and is headed for a recession within three years.
Speaking with the ABC, WA Treasurer Troy Buswell acknowledged there will challenging times ahead for the state, but he does not agree with the predictions.
“What our Treasury forecasts are showing is that the state will record still good economic growth this year and that that will slow up in the 2010-2011 year,” he told the ABC.
“I think to look beyond that is fraught with danger simply because of the volatility of the international economy at the moment.
"So I think what this report highlights is that there are challenging times ahead for the Western Australian economy."
The forecaster paints a grim picture for NSW, suggesting the state is already in recession and “drowning, not waving with its economy contracting at US-style rates”.
But Acting NSW Treasurer David Campbell said rather than being in recession, official forecasts showed the NSW economy was actually improving.
“ABS data released just over a month ago show that NSW has experienced growth both in June and September quarters and this does not indicate NSW is in recession,” Mr Campbell said on Macquarie Radio.
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