WA top performing economy for third quarter in a row
State of the States report shows that Western Australia is holding up best in cost-of-living crisis.
WESTERN Australia has scored a hat-trick as Australia’s top performing economy for a third successive quarter, new data shows.
The ore-rich state is continuing to hold up against the cost-of-living crisis, the latest CommSec State of the States report shows.
Victoria has leapfrogged both Queensland and South Australia to move into second place.
“The West’s strong relative population growth has boosted labour and housing markets, encouraging consumers to spend,” Chief CommSec Economist Ryan Felsman said.
“Overall, the economic performance of Australia’s states and territories is being supported by a strong job market, robust government spending and solid population growth at a time of higher cost-of-living pressures.
“Economic growth has slowed however, as consumer spending remains subdued due to still-elevated borrowing costs.
“As we look ahead, an expected reduction in interest rates could boost economic sentiment in the mortgage-sensitive states of New South Wales and Victoria, while the interplay between interest rate cuts, federal election outcomes, and global trade dynamics will be crucial in shaping the economic outlook.”
Other highlights show:-
- Western Australia ranked first on five economic indicators: retail spending, relative unemployment, relative population growth, housing finance and dwelling starts.
- Victoria moved up from fourth to second place, leading on construction work done and ranking second on retail spending and third on relative population growth. The state however finished bottom of the table on relative unemployment.
- Queensland slipped one spot to third place, performing well across the housing finance, dwelling starts and retail spending indicators, despite weak equipment investment.
- South Australia dropped from equal second to fourth position on the leaderboard, ranking second on three indicators but held-back by lower rankings on economic growth, equipment investment and relative population growth.
- Tasmania is steady in joint fifth spot — leading on equipment spending. NSW moves up to equal fifth from sixth position and now ranks first on economic growth, while the ACT remains seventh — in that position on three indicators.
- The Northern Territory stays in eighth place, however the decade-average method of assessing economic performance disadvantages the Top End given significant LNG construction over 2012–18 inflated a range of economic indicators.
