Surprise state has nation’s top-rated economy

THE Apple Isle has again taken out the mantle of Australia’s best-performing economy, while coronavirus-stricken Victoria has dropped from second to third spot, according to a new report.

The CommSec State of the States report analyses eight key indicators and, just like the Reserve Bank does with interest rates, uses decade-long averages to judge the “normal” state of affairs.

It is the second straight quarter Tasmania has held the top title, after housing finance roared ahead and dwelling starts lifted during the three months to September 30.

It also ranked highest for relative population growth, equipment investment and retail trade.

Retail spending in Tasmania jumped 11.4 per cent above the decade-average levels reached in the June quarter, supported by success in suppressing the virus.

The ACT overtook Victoria as the nation’s second-strongest economy, enjoying the best unemployment figures.

Unsurprisingly, Victoria’s retail trade was hit hard during the quarter – with spending slipping from second to fifth spot – but the state still ranked first on relative economic growth and construction work.

NSW shares equal fourth spot with South Australia, then in joint sixth are Queensland and Western Australia.

“There is now little to separate NSW, South Australia, Queensland and Western Australia on the performance rankings,” CommSec said.

Resources-rich WA is ranked second on relative economic growth and continues to edge away from the eighth-ranked Northern Territory. WA has also been a standout in suppressing the virus, and accordingly, retail spending was up 4.5 per cent on the decade average.