VICTORIA is in third place behind Western Australia and the Australian Capital Territory in an economic league table according to a report in The Age newspaper
As its former rivals Queensland and New South Wales fight over bottom position in this morning’s survey, its author, CommSec chief economist Craig James, says Victoria could soon find itself in first place.
“Victoria is towards the top at number three. It is not inconceivable that if it keeps getting more people into the state it is going to get the momentum to go to the top,” Mr James told The Age.
“Victoria is better than most at providing housing. It is also good at providing infrastructure – when roads are built in Victoria they are built with three or four lanes each way and no mucking around; when Victoria sees bottlenecks they are addressed; when Victoria sees problems with electricity or water they are solved,” he said.
“It is also keeping down costs for investors and it has been very successful in attracting interstate and overseas migrants. When you bring in skilled migrants who basically have a job from day one you automatically boost your economy.”
The CommSec report measures each state’s performance compared with its historical average, rather than absolute performance – a methodology that disadvantages previously strong states such as NSW.
“We are trying to find how each economy is performing compared with its own normal,” Mr James said. “Just as the Reserve Bank does with interest rates, we have used decade-long averages to decide what is normal.”
Following Victoria in fourth place is South Australia followed by Tasmania and the Northern Territory, and then NSW, which pips flood-ravaged Queensland.
NSW is the weakest state in the nation when its economic growth is compared with its decade average, with growth 9 per cent higher. Victoria’s is 13 per cent higher and Western Australia’s nearly 30 per cent higher.
In retail spending Victoria is eclipsed only by the Northern Territory and Western Australia with growth of 16 per cent compared with 12 per cent in NSW.
For home-building, Victoria is in positive territory, building 22 per cent more than its long-term average whereas NSW is building 17 per cent less.
Of course a strong economy and a population who have job security encourages spending on all sorts of things, including new homes and property investments. A strong economy is good news for all Victorians
Source: The Age
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