The state outperforms other regions in retail spending, job market strength, and population growth
Western Australia has claimed the title of Australia’s best-performing economy for the first time since July 2014, according to the latest CommSec State of the States report.
The quarterly report ranks state and territory economies by assessing eight economic indicators against their decade-long averages. Western Australia secured its top position by leading in retail spending, relative unemployment, and population growth.
South Australia, which topped the last three surveys, slipped to second place, while Queensland rose from fifth to third. Victoria dropped to fourth, and Tasmania climbed one spot to fifth. The Australian Capital Territory (ACT) moved from fourth to sixth, followed by New South Wales, which held its place in seventh. The Northern Territory remained in eighth position.
CommSec chief economist Ryan Felsman (pictured above) highlighted the resilience of the labour market and strong population growth as key drivers behind the states’ economic performance. However, he noted that high interest rates, aimed at curbing inflation, are slowing economic momentum.
“Western Australia’s robust economic fundamentals, particularly low unemployment and strong population growth, have fuelled nation-leading consumer spending, putting the state at the top of the leaderboard for the first time in a decade,” Felsman said.
“WA is well-positioned for sustained future performance, though competition remains intense, especially among the top three states as Queensland rapidly climbs the rankings.”
Western Australia leads the nation for the first time since July 2014, in the latest CommSec State of the States quarterly report.
— CommSec (@CommSec) October 28, 2024
Find out how state and territory economies are faringhttps://t.co/Q7GFFnyt9X#ausecon pic.twitter.com/7tH4WDIyX7
The report’s findings showed that Western Australia led the nation in retail spending and population growth and also has the strongest job market. South Australia ranked first in economic growth and housing starts. Queensland took the top position for home lending, with housing finance up 39% compared to the long-term average.
Victoria was the leader in construction work done, at 13.5% above the decade average, while Tasmania claimed the top spot in equipment investment, 36.4% above the long-term average. The ACT ranked second in economic growth and retail spending.
Rate-sensitive New South Wales ranked seventh in retail spending, equipment investment, and housing starts, held back by higher borrowing costs. The Northern Territory was eighth in five indicators, including economic growth, retail spending, and home lending.
The CommSec State of the States report also tracks annual growth rates of the eight indicators to gauge economic momentum. Western Australia maintained its lead for the fourth consecutive quarter, with Queensland in second. The Northern Territory jumped from eighth to third, boosted by strong performance in retail spending, business investment, and population growth. The ACT fell to fourth, with Tasmania in fifth. South Australia moved up to sixth, while Victoria dropped to seventh. New South Wales, previously sixth, now ranks last.
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