Western Australia’s economy remains a cornerstone of Australia's economic landscape, with its vast natural resources and agricultural output playing a central role in driving growth. The state is a powerhouse in resource extraction, contributing around 58% of Australia's mineral and energy exports, potentially adding up to 4.64% to the national GDP. The state's gross state product per capita, which stood at $97,940 in 2017–2018, is among the highest in Australia, well above the national average.

The resource sector, including the extraction and processing of minerals and petroleum, remains the dominant force in Western Australia’s economy. The state is a global leader in iron ore production, accounting for 34% of the world's total output, and is also one of the top producers of gold, bauxite, and alumina. In 2022, Western Australia contributed 66% of Australia's gold production, while its bauxite refineries supplied 11% of global output. Other significant minerals such as nickel, copper, lithium, and wheat, as well as chemicals and mineral sands, further bolster the state’s economic position.

Agriculture plays a significant role as well, with wheat production alone averaging nearly 10 million tonnes annually from 2010–2019. In 2019, this output contributed $2.816 billion to the state’s economy, accounting for half of Australia's total wheat production. Western Australia is also a key supplier of live cattle to Southeast Asia and the Middle East, with nearly half of Australia's live cattle exports originating in the state.

The state's expanding industrial sectors, including finance, insurance, property services, and construction, have diversified its economic base in recent years. As global demand for minerals, particularly from China and Japan, continues to rise, Western Australia’s economy has grown at a pace faster than the national average.

While resource sector growth has driven significant labor demand, leading to skill shortages, the state government has encouraged both interstate and overseas immigration to meet workforce needs. The booming resource and agricultural industries have also resulted in a rise in property values, with Perth and surrounding areas seeing increased demand for housing and commercial real estate.

In addition to its mineral and agricultural sectors, Western Australia’s economy benefits from secondary industries, including cement production, food processing, automotive body building, and shipbuilding. The region of Kwinana, located south of Perth, has been a significant industrial hub, home to one of the nation’s largest oil refineries until its closure in 2021, as well as alumina and nickel processing plants.

Western Australia is also a global leader in fishing, particularly in the harvest of western rock lobsters, prawns, crabs, and tuna. The state’s extensive coastline supports a thriving fishing industry that provides both local products and export goods.

Unique to Western Australia is its sandalwood industry, with the largest plantations of both Indian and Australian sandalwood in the world. This industry accounts for about 40% of the international sandalwood oil market, underscoring the state’s role in specialized agricultural production.

Overall, Western Australia’s economy is marked by its rich resource base, agricultural prowess, and diverse industrial expansion, positioning it as a vital contributor to Australia’s economic performance both domestically and globally.