Want to know how your State is performing economically?
If you’re interested in property investment or business you probably should be.
Well…each quarter the CommSec puts out it’s State of the States report.
And the winner is… NSW
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 retained top rankings on economic growth, equipment investment, retail trade, and dwelling starts.
- Victoria is top-ranked now on population growth and housing finance.
- The ACT economy remains in third spot on the economic performance rankings with spending underpinned by higher home prices and a firm job market.
- Queensland is second-ranked on dwelling starts. Population growth is growing at the fastest annual rate in almost two years.
- South Australia is middle-ranked on business investment and firm real wage gains support retail spending.
- The economic performance of Western Australia reflects the ending of the mining construction boom.
- Tasmania is the big improver; up from seventh to fourth on the performance rankings.
- Northern Territory has slipped from fourth to sixth spot. Slow population growth affects spending growth.
Source: CommSec State of the States
To assess population performance CommSec looked at the current annual growth rate and compared it with each economy’s decade-average (‘normal’) growth pace.
Population growth is clearly an important driver of the broader economy, especially retail spending and housing demand.
The key point being that only two states now have population growth above long-term averages.
- Victoria continues to record the strongest annual population growth as well as holding first place on the differential with the decade-average rate. Victoria’s population is 2.07 per cent higher than a year ago and this growth rate is 15 per cent above the ‘normal’ or decade average level.
- NSW has the second highest annual growth rate in Australia at 1.39 per cent, and this is 3 per cent above the decade average (last quarter, population growth was 2 per cent above ‘normal’).
- Queensland has held third place on population growth with an annual growth rate of 1.35 per cent – the strongest rate in almost two years. Still, this rate is over 30 per cent below the decade-average.
- The state or territory with the slowest annual population growth is the Northern Territory, up just 0.22 per cent on a year ago and down almost 87 per cent on the decade average – the weakest in the nation.
- Tasmania’s annual population growth rose from 0.43 per cent to 0.48 per cent in the June quarter and was 19 per cent lower than its decade average – ranking third on this metric.
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