An “all out” investment boom is possible in Australia over the next two years, according to Access Economics.

These now privatised former Treasury economists reached this conclusion – with some reservations – just a few weeks after Perth’s proud home town newspaper, The West Australian, published similar projections.

Access said the giant Gorgon LNG project – and government infrastructure projects – could boost Australia’s investment spending this year by more than $69 billion. However the private forecaster warned that even a strong investment recovery would still be a “patchwork” affair.

The usually cautious economists at Access predicted boldly that any boom would be dominated by mining projects in Western Australia.

In the latest edition of their regular publication Investment Monitor, they say “Western Australia remains the centre of the action for growth in investment at present.”

Access says this State has more than twice the value of definite investment projects under way than its nearest rival, Queensland.

“…and it continues to extend that margin,” Access added.

Its economists say that there are currently 145 projects, worth some $161 billion, awaiting final approval this year.

“Indeed, all of these projects are proposed to commence in 2010,” Access added.

Most are mining projects.

“The decisions on those project will mark the difference between investment stabilising at a high level and a further move up to an all out investment boom over the next couple of years,” the forecaster said.

But it added a caution.

“That said, it would be a patchwork boom rather than an even handed one.

“The high $A and relatively weak global demand is still wreaking havoc in some sectors.”

Access said these include manufacturing, outside the resource sector, international tourism and the construction of new office blocks.