Southern states soar to economic highs
A BOOMING housing market and population growth have pushed NSW and Victoria into the top two spots for economic performance in the country.
NSW, the most populated state, took out the title for a fourth consecutive quarter, according to CommSec’s quarterly State of the States report.
But Victoria has now taken second place as momentum builds through similar channels, leaping both Northern Territory and Western Australia.
CommSec ranks the states and territories on eight key measures, including economic growth, unemployment, retail spending, housing finance and population growth.
CommSec chief economist Craig James said the gap between NSW and the rest of the pack had widened in the latest quarter.
“There is no doubt that NSW is the premier economic state at present,” Mr James said. “This is highlighted by an indicator that we haven’t previously included in the State of States report – motor vehicle registrations.”
Western Australia is the fourth ranked state, after holding the crown for four years, as iron ore prices tumble and the mining construction boom fades.
“Queensland barely holds on to fifth spot from the ACT. They effectively constitute a third tier of economies,” he said.
South Australia is seventh followed by Tasmania at the bottom, where unemployment hit an eight- month high in June.