The Sunshine State has been named the top-performing state economy, thanks to strong population growth, a solid job market and overseas demand for energy resources, such as coal and natural gas.
CommSec’s latest State of the State report used eight economic indicators to determine the economic momentum of each Aussie state and territory.
Queensland topped the list for the first time in the report’s 13-year history, pushing Tasmania from first to second place.
“The diversification of its economy has traditionally prevented Queensland from taking top spot in the economic rankings. That is, strength in some sections of the economy had been offset by weaknesses in others,” CommSec chief economist Craig James said.
“But Queensland is currently supported by solid mining, energy and tourism sectors as well as solid internal migration.”
Queensland ranked first on relative population growth and relative unemployment. The state experienced a 2 per cent population increase this quarter and 3.6 per cent increase in unemployment, the report found.
While Tasmania came in second place overall, it ranked first for equipment investment with $400 million invested this quarter.
South Australia came in third overall and ranked first on construction work and dwelling starts. NSW and Victoria tied for fourth place, followed by the ACT, WA and NT.
“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,” James said.
State of the States
Here are CommSec’s latest rankings:
Queensland - 1st
Tasmania - 2nd
South Australia - 3rd
Victoria - equal 4th
NSW - equal 4th
ACT - 6th
Western Australia - 7th
Northern Territory - 8th
CommSec’s report is based on the most recent economic data available, however, while some data relates to the June quarter, other data (such as unemployment) is timelier and covers the month of September.