In this video CommSec Chief Economist Craig James explains how Australia’s states and territories are performing.
Each quarter CommSec compares each of the states and territories on eight key indicators including economic growth, retail spending and population growth.
Western Australia remains the best performing economy in the nation, but only just as the non mining states are now performing must better
In it’s latest State & Territory Economic Performance Report CommSec explains:
Just as the Reserve Bank uses decade averages to determine the level of “normal” interest rates; we have done the same with the economic indicators. For each state and territory, latest readings for the key indicators were compared with decade averages – that is, against the “normal” performance.
Western Australia remains the top-performing economy in the nation, but only just, ahead of the Northern Territory and NSW. NSW has been the big improver, up from fifth to third.
The ACT has been pushed back from the third-best performing economy to sixth, behind Queensland and Victoria. There is then a gap to South Australia and another gap to Tasmania with both states still under-performing other economies.
Western Australia comes out on top on only two of the eight criteria – retail spending and housing finance. Western Australia is now second on three indicators, third on two indicators and seventh on unemployment.
The Northern Territory has consolidated second place with the main improvements occurring in business investment. NSW jumped from fifth to third-best performing economy due especially to top rankings on population growth and dwelling starts.
Western Australia clings to top spot from Northern Territory & NSW.[sam id=43 codes=’true’]
Western Australia remains Australia’s best performing economy, while the Northern Territory has consolidated its position ahead of the big improver in the latest quarter – NSW.
Western Australia continues to lead the way on retail trade and is strongest on housing finance. It is second strongest on economic growth, construction work done and population growth and finished third on business investment and dwelling starts. Western Australia is weakest on unemployment (seventh).
The Northern Territory remains the second strongest economy, and only just behind Western Australia. The main strengths are economic growth, business investment, unemployment and construction work. The Northern Territory is now second strongest on retail trade. But it also is in last place on housing finance.
New South Wales has lifted from equal fifth spot to third, courtesy of improvements in economic growth, business investment, population growth and dwelling starts – on the latter two indicators it leads other states and territories.
Queensland is now the fourth strongest economy, but largely because the ACT has slipped down the leader-board rather Queensland improving its position on some of the key indicators. Queensland is second strongest on business investment but seventh on population growth.
Victoria remains the fifth strongest economy with little change in its relative position against other states and territories on any of the key indicators. Victoria is second strongest on housing finance and third strongest on population growth.
The ACT economy has slipped from the equal third-best performing economy to sixth. While the Territory is second strongest on dwelling starts and unemployment, it is the weakest on business investment and construction work and its relative position on population growth and construction work have weakened markedly.
There remains a sizeable gap in the rankings to South Australia and then another gap to Tasmania. South Australia generally is sixth or seventh on most of the key indicators although it is middle-ranked on construction work, assisted by a number of public sector projects.
Tasmania remains locked at the bottom of the Australian economic performance table. Tasmania lags other economies on five of the eight the indicators although it has improved its relative position on unemployment and business investment.
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