Perth Could Be An Economic Hotspot

Perth could become one of the global economic hotspots in the next decade but only if it can survive the financial crunch caused by the resources downturn.

According to an Oxford Economics report, Perth will provide more support to worldwide GDP than either Sydney or Melbourne in the coming 14 years. This report suggests that Perth could be one in fifty global cities that are the greatest supporters of growth, by contributing as much as $241 billion to the economic activities of the globe.

It would be in the same league as New York, Shanghai, Beijing, Los Angeles, London, and Shenzhen.

According to this report the population of Perth is assumed to also go up by 410 million by the year 2030. It is likely that it will be one of the primary economic drivers of the globe.

A total of 61% of global GDP is expected to be provided by the 750 major cities of the world. It is at 57% at present.

Oxford Economics have warned that there is just one major threat to the economic future of Perth. In particular, Perth is no different from cities like Calgary, Kuwait, and Lagos in Nigeria, who are also entirely dependent on the revenue raised from their natural resources. Even though these resources are mined thousand of kilometers away, the finances have been flowing through the cities. The hurdle for these cities is therefore to maintain the perfect industrial and export diversity in order to evade the social and monetary change as and when the resources run dry or when the global price of a commodity falls. The question however still remains, can Perth meet this challenge?