WA slips as nation's top dog

WA's days as the nation's "top dog" economy are numbered, according to forecasts that cast doubt over the State Budget.

In a report to be released today, Deloitte Access Economics says the slowdown in new mega mining projects will soon be felt across the State despite a sharp increase in exports.

Director Chris Richardson said the economic feel-good factor of mining construction, with its flow-on through WA, would not be replicated as more iron ore and natural gas is shipped overseas.

The economy will stay sound but will soon be overtaken by other parts of the nation.

"From top dog today, WA's growth rate is projected to dip below the Australian average in 2014-15," Mr Richardson says.

Deloitte Access tips the economy to grow just 1.8 per cent next financial year, well short of the 2.5 per cent the State Budget is based on.

Slower growth would translate into lower tax receipts.

At the same time, high population growth will strain State finances. The slowdown will be driven by large falls in private engineering and commercial construction that will slip below where they stood two years ago.

Mr Richardson said population growth, and a solid residential housing sector, would help smooth some of the rougher edges facing the State.

The current strength of the WA economy is confirmed in another report to be released today.

CommSec's "state of the States" report confirmed WA remained the number one economy in the Commonwealth.

Chief economist Craig James said strong retail spending plus economic growth meant WA was the nation's top economy.

But WA was starting to slip on key indicators, led by dwelling starts, and other parts of the country were catching up.

Mr James said the coming months should be good for the entire country. "All economies should lift now that the uncer-tainty of the Federal election is finally out of the way," he said.