Each quarter CommSec attempts to find out which state or territory is Australia’s economic leader. Now in its 16th 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.
- Economic growth
- Retail spending
- Equipment investment
- Unemployment
- Construction work done.
- Population growth
- Housing finance
- 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.
Each quarter CommSec attempts to find out which state or territory is Australia’s economic leader. 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 January 2025 report click here
Western Australia tops the State of the States’ economic performance rankings for the second time since July 2014 - and for the second successive report. Western Australia ranks first on retail spending, relative unemployment, relative population growth, housing finance and dwelling starts.
Queensland is now equal second, up from third place, with solid results across the board. South Australia, now joint second, ranks first on economic growth.
Victoria remains in fourth place - leading on construction work done - and is in fourth spot on two indicators.
Tasmania is steady in fifth spot - ranking second on equipment spending - but is held-back by lower rankings on other indicators.
NSW moves up to sixth from seventh position and now ranks fifth on four indicators.
The ACT has slipped back to seventh - in that position on four indicators.
The Northern Territory remains in last place. But we acknowledge that the decade-average method of assessing economic performance disadvantages the ‘Top End.’ Significant LNG construction over 2012–18 inflated a range of economic indicators. So, we also compile rankings of economic momentum - that is, the annual growth rates for the eight indicators.
The State of the States report assesses economic performance by looking at the most recent results - 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 to the key indicators. A state or territory may have been under-performing, but if annual growth is strengthening, then this suggests that performance has scope to improve.
If we focus just on annual growth rates, on an aggregate basis (looking across all indicators), resources-focused states Queensland and Western Australia both have the strongest annual economic momentum, supported by robust housing markets and solid population growth.
Queensland is now in first spot with Western Australia slipping to second. There is little to separate the commodities and tourism-heavy states, with Queensland ranked first or second on five of the eight key economic indicators.
Close behind, Western Australia is top ranked on three economic indicators—construction work done, relative population growth and dwelling starts.
The biggest mover is Victoria, which has jumped to third from seventh place in a sign of improvement in underlying economic activity. South Australia has ascended to fourth from sixth place. The Northern Territory has eased back to fifth from third spot. The ACT and NSW are now in joint sixth position, ahead of Tasmania in eighth spot.
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