How are Australia’s states and territories performing? Each quarter CommSec attempts to find out by analysing eight key indicators: economic growth; retail spending; business investment; unemployment; construction work done; population growth; housing finance and dwelling commencements.
Just as the Reserve Bank uses long-term averages to determine the level of ‘normal’ interest rates; we have done the same with key economic indicators. For each state and territory, latest readings for the key indicators were compared with decade averages – that is, against the ‘normal’ performance.
The State of the States report also includes a section comparing annual growth rates for the eight key indicators across the states and territories as well as Australia as a whole. This enables another point of comparison – in terms of economic momentum. The latest data indicates a two-tiered national economy with strength in the south-east states and territories, while there is little to separate the other state and territory economies.
NSW has solidly held the position as the best performing economy, with strength very much broad-based.
Victoria remains firmly in second spot, supported by strong population growth and housing activity.
The ACT economy remains in third spot on the economic performance rankings with spending underpinned by higher home prices and a firm job market.
Tasmania has been the big improver, moving from seventh to fourth with improving population growth providing momentum.
Queensland has moved from sixth to fifth, underpinned by robust home construction.
Northern Territory has eased from fourth to sixth spot but ahead of South Australia and Western Australia.
Reference: CommSec State of the States
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