The transition from the mining investment boom is going well and it’s NSW’s time in the sun.
The latest Deloitte Access Economics’ Business Outlook shows low interest rates are supporting retailers and a rising tide of advisory work for the the state’s business sector.
“It’s NSW’s time to shine,” says Deloitte Access Economics.
“The housing market is also hot, with a big lift in home building underway helping to underpin a broadly favourable growth outlook.
“A state that had been left in the shadows as the resource sector powered up the likes of Western Australia and Queensland has begun to work its way back up the state growth leaderboard.
“Some of that is due to the impact – felt already, and still in prospect – of lower mining-related construction work in the resource sector states.
“And some of it is because long-time rival Victoria has been harder hit than NSW by the Australian dollar’s lingering strength.”
CommSec’s quarterly State of States report shows NSW has the fastest annual economic growth rate, up by 6.3% on a year ago, ahead of Western Australia with 3.3% and Victoria on 1.7%.
Overall, the transition from the mining investment boom is going well, says Deloitte Access Economics.
Mining-related construction work may be fading, but resource exports are climbing fast.
“That relatively smooth baton pass between growth drivers has kept overall Australian economic growth close to trend,” says Deloitte Access Economics.
The baton change between states is happening but the non-resources states haven’t quite yet taken over.
While NSW is getting the good growth numbers, resource-related construction work will keep Queensland and the Northern Territory near the top of the state league ladder for output growth in 2014-15.
Yet Western Australia is slowing as the construction cliff increasingly bites, while NSW, Victoria and Tasmania are on their way up.