Aussie state with best performing economy, according to CommBank

Tasmania has kept it's position as the best performing Australian economy for the sixth quarter in a row (Source: Getty)

Tasmania has taken out the top spot in the Commonwealth Bank’s State of the States report for the sixth time in a row.

Queensland and Western Australia are showing the strongest momentum move into the second half of 2021 due to an increase in Aussies moving to those states, the report said.

The CommSec State of the States report is now in its 12th year and uses the latest available information to provide a valuable economic snapshot of how Australia’s state and territory economies are navigating the COVID-19 pandemic.

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For the sixth quarter in a row, Tasmania holds the mantle of the best performing economy. It leads on four of the eight indicators (relative population growth, equipment investment, relative unemployment and dwelling starts) and ranked second on another two indicators (construction work and retail spending).

However, there is little to separate the other states and territory economies, all of which have been struck by the spread of the delta variant of COVID-19.

The official state rankings are:

1. Tasmania

2. Victoria

3. Australian Capital Territory

4. South Australia

5. New South Wales

6. Western Australia

7. Queensland

8. Northern Territory

“When assessing overall economic performance, the important point to make is that all state and territory economies are performing well, supported by highly stimulative fiscal and monetary policies,” CommSec chief economist Craig James said.

“Despite constant challenges from COVID-19, activity is solid, especially in construction, while job markets continue to improve.”

James said Tasmania’s ability to suppress the spread of the delta outbreak has consolidated its top position.

“The success in suppressing the COVID-19 virus has meant Tasmania hasn’t been forced to lock down its economy to the same extent as other economies although it has had to close borders,” he said

“There are few signs of Tasmania giving up the position as top performing economy in the next six months.”

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