PERTH (miningweekly.com) – Commodity export volumes were expected to support economic growth in Western Australia in 2014/15, advisory firm Deloitte Access Economics reported on Friday.

The latest Quarterly Economic Brief from the Chamber of Minerals and Energy of Western Australia (CME), prepared in conjunction with Deloitte, revealed that growth was forecast at 2.6% for the current financial year.

By 2018/19, Western Australia’s economic growth would reach 3.4%.

Reflecting the state’s transition from an investment-driven climate to export-led growth, exports grew by 5.7% in 2013/14, as a result of higher iron-ore exports.

The CME said on Friday that higher iron-ore export volumes were expected to continue in 2014/15, as projected expansions were completed and efficiency gains were realised from existing infrastructure.

Gold and oil imports from the state were, however, expected to slightly offset this growth.

The report, meanwhile, also highlighted the collective downward trend in global commodity prices, in particular the price of crude oil, which continued during the three months to January.

“Notwithstanding issues around price, it was pleasing to see production increases for bulk commodities iron-ore and gas.

“The significant investment made over the past few years is delivering record production and export numbers in Western Australia,” said CME CEO Reg Howard-Smith.

Exploration expenditure in the state fell 3.9% in the September 2014 quarter. Commodities driving the overall decline in exploration include petroleum, iron-ore and uranium, with only copper and mineral sands recording slight increases.

“Investment in exploration is the lifeblood of future industry.

“CME is hopeful the federal government’s new exploration development incentive will provide a boost to the exploration sector,” said Howard-Smith.

The incentive will allow eligible exploration companies to convert a portion of their tax loss to exploration credits, which can be provided to shareholders to entitle the shareholders to an equivalent tax benefit.

“Together with the state government exploration incentive scheme, these initiatives should enable new exploration programmes to get under way,” he added.