CommSec State of States report – April 2022
 
Each quarter CommSec attempts to find out how the Australian states and territories are performing by analysing eight key indicators:
 

  1. Economic growth
  2. Retail spending
  3. Equipment investment
  4. Unemployment
  5. Construction work done.
  6. Population growth
  7. Housing finance
  8. Dwelling commencements.
     

Just as the Reserve Bank uses long-term averages to determine the level of “normal” interest rates; CommSec have done the same with the economic indicators. For each state and territory, latest readings for the key indicators were compared with decade averages – that is, against the “normal” performance.
 
Now in its 13th year, the report also includes a section comparing annual growth rates for the eight key indicators across the states and territories as well as Australia as a whole, enabling comparisons in terms of economic momentum.

To read the full April report click here
 
All states and territories continue to perform well in challenging times. Governments now are attempting to support consumers and businesses from cost-of-living pressures while at the same time removing now redundant stimulus measures.
 
In a relative sense, and for the ninth quarter in a row, Tasmania holds the mantle of the best performing economy. But after leading on four of the eight indicators in the previous survey, Tasmania now leads on just one indicator. However, Tasmania is second or third on five other indicators.
 
There is little to separate the other economies. Victoria is second; Queensland and Western Australia are equal third; the ACT and South Australia are equal fifth; NSW is seventh; and the Northern Territory is eighth.

The equal third position for Queensland is its highest ranking in eight years. Western Australia has equalled its best ranking in 7½ years. The opening of local and foreign borders will present challenges and opportunities in coming months. Queensland and Western Australia may benefit most from the opportunities presented. 

Annual Growth Rates
 
The State of the States report assesses economic performance by looking at the most recent result—such as retail trade or construction—and compares that with the ‘normal’ experience. And by ‘normal experience’, we define this as the decade average.
 
A resident of the state or territory can therefore assess whether they are experiencing relatively better economic times. Comparing states or territories on the same criteria determines which state or territory is performing the best on a certain indicator.
 
In addition to relative economic performance, some are also interested in economic momentum. That is, annual changes of the key indicators. A state/territory may have been under-performing, but if annual growth is rising, then this suggests that performance has scope to improve. Western Australia is the growth leader
 
Of the eight indicators assessed, all states and territories except Northern Territory topped the leader board on at least one indicator (Western Australia and South Australia shared top spot on annual employment growth).
 
When looking across growth rates for the states and territories the ACT, South Australia, Western Australia and Queensland have annual growth rates equal or exceeding the national average on four of the eight indicators.
 
Tasmania, NSW and Victoria lead the national average on three measures. The Northern Territory leads the national average on two indicators.

Please do not hesitate to contact us if you have any questions.

Kind regards,

The Coastline Private Wealth Team.
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