Following closely is NSW
Tasmania has maintained its rank as Australia’s best-performing economy, with New South Wales close behind, according to a quarterly ranking of economic performance.
The CommSec State of the States report said Tasmania has kept its crown due to its strong job market, and relative strength in home loan demand and dwelling, although population growth lags other state and territory economies, restraining momentum.
In second place was NSW, followed by South Australia, Queensland, Western Australia, Victoria, the Australian Capital Territory, and the Northern Territory.
The CommSec State of the States report provides an economic snapshot of each state and territory by comparing the latest data on economic growth, retail spending, equipment investment, unemployment, construction, population growth, housing finance, and dwelling commencements. This quarter, the report placed extra focus on annual growth rates for the eight indicators to highlight economic momentum.
Craig James (pictured above), CBA chief economist, said Tasmania ranked first in two of the eight indicators, with high dwelling starts and firm equipment investment.
“There is little to separate Tasmania from NSW in terms of economic performance,” James said. “And NSW has solid momentum on its side, leading the ranking of annual growth rates for the eight indicators.
“In fact, Tasmania faces challenges from at least three economies – NSW, as well as South Australia and Queensland. Notably, Tasmania ranks eighth on relative population growth – pointing to slower economic activity ahead.
“There are encouraging signs for the Western Australian economy. Western Australia leads other states and territories on annual growth rates for two of the eight indicators. This points to potential to ride up the economic performance rankings over the next few years.”
Below are other state and territory highlights:
- Tasmania ranked first on dwelling starts and equipment investment.
- NSW ranked first on relative unemployment.
- South Australia ranked first on relative population growth.
- Queensland ranked first on home loans.
- Western Australia ranked first on relative economic growth.
- Victoria ranked first on construction work done.
- The ACT ranked first on retail spending.
- The Northern Territory ranked third on relative economic growth.
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