The mining boom has ended and New South Wales is back on top as Australia’s best performing economy. In fact, it’s a quinella for Australia’s two largest states with Victoria consolidating second spot according to the latest release of CommSec’s quarterly State of the States report.
The report ranks the states against their long run averages, what you might consider “normal performance”, in population growth, retail trade, dwelling starts and housing finance, unemployment, equipment investment, construction work and overall economic growth.
The latest shows New South Wales is the “premier economic state”, Craig James CommSec chief economist said in a release.
NSW scored top marks for the second consecutive quarter for population growth, retail trade and dwelling starts. It added housing finance to the list this time around.
On the other criteria, NSW “is still second placed on unemployment and is also second strongest on equipment investment,”according to James. “The other rankings are: construction work (fourth) and economic growth (fifth).”
Obviously a cooling housing market could pose a problem to the NSW economy on that basis. And it’s housing, finance and population fuelling Victoria’s hold on second spot, James said.
Western Australia and the Northern Territory share third spot with unemployment, and its impact on housing was the key drag on what looks like an otherwise solid performance from WA.
Queensland is mid-range and while Tasmania is bringing up the rear, James says it has “most potential to improve further, now ranked number one on unemployment and with dwelling starts up over 54 per cent on a year earlier”.
Here’s the graphic: