Queensland, Australia's second-largest state, has made history by becoming the best-performing state economy for the first time.
The recent CommSec State of the State report shows that its economy has been growing at a faster pace than any other state in Australia, thanks to strong population growth, a solid job market and overseas demand for energy resources, such as coal and natural gas.
The report used the latest available information to provide an economic snapshot of each region by comparing annual growth rates for eight key indicators including:
- economic growth
- retail spending
- equipment investment
- unemployment
- construction work done
- population growth
- housing finance
- dwelling construction.
Across all the indicators, Queensland is now ahead of Tasmania which drops from first to second.
South Australia has lifted from fifth to third.
NSW is now in joint fourth spot with Victoria, ahead of the ACT, Western Australia and the Northern Territory.
Ascension to the top position on the economic rankings
The state's ascent to the top position on the economic rankings is a clear indication of its robust and resilient economy.
CommSec's Chief Economist Craig James commented:
"The diversification of its economy has traditionally prevented Queensland from taking the top spot in the economic rankings.
That is, strength in some sections of the economy had been offset by weaknesses in others.
But Queensland is currently supported by solid mining, energy and tourism sectors as well as solid internal migration.
Queensland has a strong report card, ranking first on relative population growth and relative unemployment, and is second-ranked on three of the other eight economic indicators.
When looking at annual growth rates to get a guide on economic momentum, Queensland had annual rates that exceeded the national average on five of the eight indicators.
In terms of future economic performance for all state and territory economies, much will depend on the performance of housing and job markets at a time of higher interest rates.”
Other findings in the report
State and territory highlights
- NSW ranked third on equipment investment and relative unemployment.
- Victoria ranked first in retail spending.
- Queensland ranked first on relative population growth and relative unemployment.
- South Australia ranked first in construction work and dwelling starts.
- Western Australia ranked first in relative economic growth.
- Tasmania ranked first on equipment investment.
- The ACT ranked first in housing finance.
- The Northern Territory ranked third on relative economic growth.
Annual growth rates
- Annual changes in economic indicators are useful for measuring economic momentum.
- Of the eight indicators assessed, the ACT, the Northern Territory and Queensland led on two of the eight economic indicators. And Tasmania and NSW each led on one indicator.
- Notably, when looking across annual growth rates, NSW, the ACT and Queensland had annual growth rates that exceeded the national average on five of the eight indicators.
- The next best was the Northern Territory, exceeding the national annual growth rate on four of the eight indicators.
- Tasmania and South Australia led the national average on three indicators. Western Australia exceeded the national average growth rate on two indicators followed by Victoria on one indicator.
