Which state tops economic performance?

South Australia has topped the economic performance leaderboard for the third consecutive quarter, according to the latest CommSec State of the States report.

A robust job market and strong construction activity have propelled South Australia to the forefront, placing it just ahead of Western Australia.

Western Australia close behind

Western Australia has maintained its position as a close second, leading in relative population growth and housing finance.

The West exhibits the strongest annual economic momentum, signaling a potential challenge for the top spot in future reports.

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Victoria holds steady in third place, with the ACT in fourth.

Queensland, Tasmania, and NSW have all slipped in rankings, now occupying fifth, sixth, and seventh positions respectively, while the Northern Territory remains in eighth.

“Across the country, the economic performance of Australia’s states and territories is being supported by both strong employment and population growth, at a time of higher-than-desired price inflation,” said Ryan Felsman (pictured above), senior economist at CommSec.

Indicators breakdown

• South Australia: First on three indicators—dwelling starts, construction work done, and unemployment.
• Western Australia: Leads in population growth and home lending, showing the strongest annual economic momentum.
• Victoria: Third on three indicators, second on retail spending.
• ACT: Tops economic growth, retail spending, and equipment investment.
• Queensland: Ranked fourth on four indicators, with a strong labor market supporting growth.
• Tasmania: Second on two indicators, but housing activity has recently slowed.
• NSW: Solid population growth, but retail spending pressured by higher borrowing costs.
• Northern Territory: Eighth on six indicators, but retail spending has remained stable over the past year.

Future outlook

“While South Australia retains first place, Western Australia is seeing the strongest annual economic momentum, so it will be interesting to see how this plays out in the coming quarters,” Felsman said.

“New South Wales, Tasmania, and Queensland slipped down the rankings this quarter. Generally speaking, state economies have slowed as consumers respond to higher borrowing costs and price pressures."

Read the CommBank media release here.

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