Invest
Australia’s top state economy leads for eighth quarter in a row
The best-performing economy ranked first in retail spending, relative unemployment and other measures.
Australia’s top state economy leads for eighth quarter in a row
The best-performing economy ranked first in retail spending, relative unemployment and other measures.
Tasmania has been named the best-performing economy in the country for the eighth quarter in a row as part of CommSec’s State of the States report.
The state led the rest of the country in four out of eight economic indicators, including retail spending, relative unemployment, equipment investment and dwelling starts, and ranked second on construction work done and relative economic growth.
South Australia took the second position overall, ranking second on the measures of equipment investment and relative unemployment, while Victoria took third, ranking first on construction work done and second on housing finance and dwelling starts.
“Australia’s state and territory economies are in solid shape, well supported by strong fiscal and monetary stimulus,” said CommSec chief economist Craig James.
“Unemployment rates are historically-low across much of the nation. Labour is in short supply across many industries – a reflection of current COVID-related self-isolation requirements and border restrictions.”
Western Australia took fourth place, ranking first on relative economic growth and second on relative population growth, and was followed in the rankings by Queensland, NSW, the ACT and the Northern Territory.
Outside of Tasmania’s lead, Mr James said there was little separating the performance of the other state and territory economies.
“Lockdowns have weighed on the economic performances of NSW and the ACT in the last survey,” he said.
“While both of these economies could scale the rankings again, new challenges are presented by COVID-19 restrictions and the resulting labour shortages – not just for NSW and the ACT, but for all economies. Meanwhile, the opening of domestic and international borders is also likely to further support the Queensland economy.”
Commenting on the findings of the report, Tasmanian Premier Peter Gutwein said that it represented “fantastic news” for the state.
“There is no doubt our economy entered the pandemic in a position of strength, and we worked hard to maintain this throughout the pandemic,” he said.
“We will continue to support Tasmanians, our businesses and our community to maintain this momentum as we continue through this transition phase and learn to live with COVID.”
While Tasmania will likely remain on top of the rankings in the short-term, according to Mr James, he noted that change might be in store over the rest of the year, particularly with Western Australia and South Australia rising up the rankings.
“Ahead, the country will continue to face challenges managing the latest Omicron wave with infrastructure spending continuing to be a key driver of growth in 2022,” Mr James said.
“In differing ways, each state or territory will attempt to ‘live with COVID’ throughout 2022, potentially leading to major changes in the performance rankings.”
RELATED ARTICLES
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more
Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
Economy
Co-ops and mutuals boost revenue to $43.2 billion despite economic challenges
Australia's top 100 co-operative and mutual businesses have posted a record performance in the 2023 financial year, growing total revenue by 16.1 percent to $43.2 billion. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more
Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
Economy
Co-ops and mutuals boost revenue to $43.2 billion despite economic challenges
Australia's top 100 co-operative and mutual businesses have posted a record performance in the 2023 financial year, growing total revenue by 16.1 percent to $43.2 billion. Read more
