- Tasmania was labelled Australia’s best performing economy, topping three of CommSec’s eight indicators, including population growth, equipment investment and dwelling starts
- The ACT was a close second, with economic activity in Canberra booming 22.1 per cent above its decade average level of performance
- WA came in third position, followed by Victoria, South Australia, Queensland, NSW and the Northern Territory
- Going forward, CommSec has forecast strong growth for WA’s economy, which could outpace growth in other states and territories
Tasmania has taken out the top spot in CommSec’s latest ‘state of the states’ report which examines economic performance amongst Australia’s state and territories.
The state was labelled Australia’s best performing economy by the Commonwealth Bank’s (CBA) investment arm.
CommSec explained Tasmania topped three of its eight indicators, including relative population growth, equipment investment and dwelling starts.
The number of new dwellings beginning construction was up 35.3 per cent compared to Tasmania’s decade-long average.
Investment in plants and equipment also increased by 27.8 per cent on its 10-year average, while the state’s annual population growth rate increased by 61.9 per cent.
The ACT was ranked a close second in terms of economic performance, with economic activity in Canberra booming 22.1 per cent above its decade average level.
Australia’s capital also boasted the best uplift in retail spending, up 19.4 per cent, as well as the strongest job market in the country.
WA came in third position in CommSec’s latest report, followed by Victoria, South Australia, Queensland, NSW and the Northern Territory.
However, the bank argued that going forward WA’s economic growth could overtake the ACT’s and Tasmania’s in the long term.
“Tasmania and the ACT have firmly held their positions at the top of the performance rankings due to above-average population growth in Tasmania, and a strong job market in the ACT,” CommSec Chief Economist Craig James said.
“The main challenge will come from Western Australia, which improved five places on dwelling starts, two positions on both relative unemployment and housing finance and one place on relative economic growth,” he added.