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What is Australia’s best-performing state economy?
For the fifth straight quarter, Tasmania has outperformed all other state economies, a big four bank has revealed.
What is Australia’s best-performing state economy?
For the fifth straight quarter, Tasmania has outperformed all other state economies, a big four bank has revealed.
Commsec’s State of the States report showed that the ACT is now the second best-performing state, with Western Australia rising through the ranks to reach third position.
CommSec analyses eight key indicators for the survey: economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements.
Its chief economist Craig James noted that strong population growth in Tasmania and strong jobs growth in the ACT have led to the states being the country’s best-performing economies.
Tasmania’s population grew by 0.99 per cent over the quarter, while the ACT saw its official unemployment rate fall to just 3.4 per cent.
“As a result, it’s unlikely we’ll see any considerable change at the top of the rankings in the near future,” he said.
Off the back of a strong mining boom and home building, WA has moved to its highest ranking spot in six years.
“The main challenge will come from Western Australia, which improved five places on dwelling starts, two positions on both relative unemployment and housing finance and one place on relative economic growth,” Mr James said.
“Despite these gains, Western Australia fell five places on equipment investment and one place on retail trade.”
Victoria is sitting at fourth, followed by South Australia in fifth place.
Victoria still ranks first on construction work done as well as housing finance. Victoria’s lowest ranking is seventh on relative unemployment and relative population growth.
Queensland has dropped one place to sixth and NSW has dropped back to seventh. The Northern Territory remains at eighth place for the 10th consecutive quarter.
Queensland is ranked second for housing finance, lagging at eighth for both relative economic growth and equipment investment, while NSW continues to outperform on key metrics, ranking third in construction, but falls on dwelling starts.
“Queensland also has scope to lift its ranking in 2021 due to improvement in the job market, rising inbound migration and increased domestic tourism demand,” Mr James said.
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