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
RBA May Consider Early Rate Hike Amidst Economic Growth and Inflation Concerns
Australia's economic landscape is witnessing a dynamic shift as the Reserve Bank of Australia (RBA) grapples with the implications of recent growth figures and inflationary pressures. The latest GDP ...Read more
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
Economy
RBA May Consider Early Rate Hike Amidst Economic Growth and Inflation Concerns
Australia's economic landscape is witnessing a dynamic shift as the Reserve Bank of Australia (RBA) grapples with the implications of recent growth figures and inflationary pressures. The latest GDP ...Read more
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
