Australia’s best performing state revealed

Eight key economic indicators help determine the nations best performing economies for the first quarter of 2016, with surprising results.

NSW has retained its position as Australia’s best performing state, but developments in Victoria have seen the state creeping up to place a close second.

Also read: Budget for economy not election: Morrison

Both states are maintaining a healthy lead over the other Aussie states and territories, according to a recent CommSec report which analysed eight key economic indicators – economic growth, retail spending, equipment investment, unemployment, construction work done, population growth and housing finance and dwelling commencements.

April 2016 state & territory economic performance

Source: CommSec 

NSW

NSW has retained its top rankings on population growth, retail trade, dwelling starts, and unemployment but has drifted to second spot on housing finance.

NSW improved to second place on economic growth and is still ranked fourth on construction work done.

Also read: What surging commodity prices mean for the Aussie economy

VIC         

Victoria has gained substantial ground on NSW and is solidly in second spot on the economic performance rankings.

Victoria’s main strength is housing finance and is ranked second on a number of indicators (population growth, retail trade, unemployment, and dwelling starts).

ACT

The ACT economy has held onto third spot.

The territory came in second place in terms of equipment investment and third on population growth, housing finance, and retail trade.

Equipment investment is up 21.1 per cent on a year ago.

NT

The Northern Territory is in fourth place and remains in top spot for economic growth and construction work done.

However, according to the report, the territory economy is losing momentum, now ranked in last place for population growth, business investment and housing finance.

Also read: What lies ahead for Australia's economy?

QLD

There is now little separating Queensland from the ‘top end’ economy, in fifth place on the economic performance rankings.

While ranked third on dwelling starts, it is ranked last on construction work and in seventh place in terms of economic growth.

WA

The biggest change over the past quarter has been the drop in performance of the Western Australian economy, having now moved down one place to sixth position.

The mining state is second for construction work and ranked fourth on retail trade.

But the state continues to struggle on unemployment (in last place) and is ranked seventh on business investment, population growth, and housing finance.

Also read: House prices dip again as Aussie economy weakens

TAS & SA

Tasmania and South Australia both came in joint seventh place although there is little to differentiate between the bottom three economies.

Neither state ranked particularly well in the report.

Tasmania saw a modest lift in momentum, now seventh in terms of retail trade (previously eighth), and fourth for unemployment.

South Australia does best on population growth and equipment investment (both ranked fourth) but is seventh or eighth on three indicators