NSW economy best in the nation as west coast lags
New South Wales is again the best performing economy across Australia, with a broad range of economic indicators, including retail, trade and investment placing it well ahead of West Coast states and territories, according to data from CommSec.
The CommSec State of the States report showed dwelling states and equipment investment had also helped New South Wales (NSW) stay on top, which CommSec chief economist, Craig James, said was reflective of its strong position as a favoured destination.
"The state remains in top spot for dwelling starts with commencements more than 81 per cent above decade averages," he said.
"New South Wales has now taken top spot on economic growth and maintained top spot on retail rankings."
James said east coast states and territories had a clear lead in the country, with Victoria now ranked second on population growth and housing finance. The Australian Capital Territory (ACT) was third, with a firm job market and solid economic performance having kept the nation's capital at the front of the rankings.
"Overall home building is providing solid momentum to the economy," James said.
"New South Wales remains solidly on top of the economic performance rankings but it may experience a challenge from either Victoria or the ACT over the coming year."
Tasmania showed the biggest improvement, up to fourth position from seventh due to solid population growth supporting its job market. Queensland also recorded strong a result, up from sixth place to fifth, with housing development across the northern half of the state providing a boost.
James said the slide from fourth to sixth for the Northern Territory (NT) was down to its higher median level of unemployment.
"The Northern Territory is losing momentum and indeed the economy fell from fourth spot to sixth on the performance rankings," he said.
"The job market is strong but population growth is weak, affecting consumer spending and household demand."
Western Australia (WA) rounded out the rankings ahead of South Australia, a clear reflection of the mining boom. Despite the economic set back, James said that improvements in housing affordability and a recovery in metal and mining prices was encouraging for the west coast, which could yet see a new period of growth.
"The South Australian economy has potential to lift over the coming year. Higher home prices and real wage gains should support consumer spending," he said.
"Higher mining and metal prices and record export volumes [also] serve to boost the outlook for the Western Australian economy."
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