Jonathan Pain.
Electric vehicles could be part of Western Australia’s economic future, a leading economist says.
The state has the chance to lead the way with the EV market, with all the materials needed to make EV batteries available there, international economist Jonathan Pain says.
Speaking at the Urban Development Institute of Australia WA industry lunch: Perth in a Global Context – Politics and the Economy with Jonathan Pain, the author of The Pain Report says research indicates EVs will overtake internal combustion engines (ICE) in about 20 years, with more than 20 million sales world-wide predicted by 2030.
He cites BP chief economist Spencer Dale who is even more bullish and predicts the global fleet could expand to 450 million by 2035, the Eastern Reporter says.
Pain also reckons a significant cut in interest rates is looming, saying that if was not for the coming federal election the Reserve Bank of Australia would have already cut rates, possibly by up to 0.5%.
The world economy had never been in better shape with the “fewest countries in recession that we have seen in modern times”, Pain says.
“Today we have growth in the great majority of nations around the world.”
While the Chinese economy is slowing, it’s still growing, Pain says.
He believes Australia is attractive to Chinese investors, who see Australia as their top preferred destination, with 21% of Chinese chief executives identifying Australia as a growth market for the year ahead.
In the short term, Pain expects Australia to have slower growth, weaker housing – particularly in Sydney and Melbourne, and rates cut by the RBA because of large household debt and a drop in both retail sales and discretionary spending.
Meanwhile, the UDIA WA welcomes progress toward the establishment of Infrastructure WA (IWA), with news the legislation would be introduced to Parliament.
“We have been calling for a more strategic approach to infrastructure planning and provision across the state for many years,” UDIA WA chief executive officer Tanya Steinbeck says.
