- Tasmania continues to lead the rankings for the eighth quarter in a row as the best performing state economy in Australia, according to the latest CommSec report
- The other states followed closely together, with South Australia ranked second, then Victoria and Western Australia
- CommSec says however this could change in 2022 due to uncertainty around COVID-19 and the rise in Omicron cases
- According to the report, Western Australia and South Australia economies have moved up the rankings, performing strongly during the pandemic
- Lockdowns have weighed on the economic performance of NSW and the ACT
Tasmania continues to lead the rankings as the best-performing state economy in Australia, according to the latest CommSec report.
In its quarterly State of States report, CommSec said Tasmania has been the stand out state for the eighth quarter in a row, however, the bank has warned much can change in 2022.
The other states followed closely together, with South Australia ranked second, then Victoria and Western Australia.
“Australia’s state and territory economies are in solid shape, well supported by strong fiscal and monetary stimulus. Unemployment rates are historically-low across much of the nation,” CommSec Chief Economist Craig James said.
“Labour is in short supply across many industries – a reflection of current COVID-related self-isolation requirements and border restrictions. Ahead, the country will continue to face challenges managing the latest Omicron wave with infrastructure spending continuing to be a key driver of growth in 2022.”
According to the report, Western Australia and South Australia economies have moved up the rankings, performing strongly during the pandemic.
WA benefited from a surge in iron ore exports and prices, while SA saw strong government and business investment.
Lockdowns have weighed on the economic performance of NSW and the ACT, meanwhile, the opening of domestic and international borders is also likely to further support the Queensland economy.
“While both of these economies could scale the rankings again, new challenges are presented by COVID-19 restrictions and the resulting labour shortages – not just for NSW and the ACT, but for all economies,” Mr James said.
“In differing ways, each state or territory will attempt to ‘live with COVID’ throughout 2022, potentially leading to major changes in the performance rankings.”