WA Premier Colin Barnett says major resource projects will be delayed and deferred as a result of a slowdown in the global economy.
Talking to reporters in Perth today, Mr Barnett said the loss of 40,000 full-time jobs across the nation represented a "significant weakening" of the Australian economy.
Mr Barnett said that for some time he had been warning of a slowdown which would have a knock-on effect on WA's powerhouse economy.
"The situation in Europe is precarious and that is affecting our financing of major projects," he said.
"The impact on this state's economy and especially on the resources sector is through the financial system.
"Don't be surprised to see a few projects slow down in their timetables over the coming weeks."
Mr Barnett said WA's nation-leading economic growth figures were "distorted".
The Australian Bureau of Statistics released figures yesterday showing the WA economy grew 8.4 per cent in the September quarter - its fastest pace on record.
"It would be wrong to read too much into those (figures)," Mr Barnett said.
"Those figures are driven to higher levels by investment, particular investment in the Gorgon (natural gas) project.
"You've basically got a skewing of the figures."
Mr Barnett dismissed warnings of an impending slowdown in China, saying domestic growth would eventually supplant its export-based economy.
"I'm still very confident about Chinese growth," he said.
"It may not always be eight or 10 per cent but you're still going to get very strong growth in China for perhaps another 20 years."
Mr Barnett said there was an "enormous surge of investment" in WA which would also underpin the state's economy.
