Southern states heading north
ECONOMIC growth has dipped across most of Australia, with Victoria and NSW the only states powering ahead, new research suggests.
ANZ economists said growth in Queensland, Western Australia, Tasmania, South Australia, the ACT and Northern Territory was below average during the year to June. NSW was the strongest performer followed by
Victoria, with economic activity in those two states growing faster than their long-term average rates.
ANZ co-head of Australian economics Cherelle Murphy said the two states were benefiting from housing booms and improvements in business and jobs market conditions.
“Given the improvement in activity for NSW and Victoria, which together account for more than half of Australia’s GDP, we expect an ongoing, although slow economic recovery for Australia,” she said.
The findings were part of ANZ’s inaugural Stateometer, which measures the economic performance of the nation’s states and territories.
It found that the end of the mining boom and weakness in the industrial sector were weighing on Western Australia and South Australia.
ANZ expected activity would pick up in Tasmania and Queensland, thanks to benefits flowing from the housing sector and falling Australian dollar.