A surging Queensland economy has improved its position in the State rankings, just falling short of pipping Western Australia for the top spot.
The CommSec State of the States report showed WA was Australia’s best-performing State economy for the second quarter in a row.
Chief CommSec Economist Ryan Felsman said Queensland moved up from third spot, joining South Australia in second spot, while Victoria remained in fourth place, with Tasmania steady in fifth place.
Mr Felsman said NSW leapfrogged the ACT into sixth from seventh place, with the Northern Territory remaining in eighth spot.
He said the State of the States report determined which state or territory economy was performing best, by tracking eight key economic indicators and comparing the latest data with decade averages.
“Overall, economies have slowed in response to higher interest rates and inflation, however Australian states and territories are proving resilient due to a strong job market and solid population growth.
“As consumers respond to higher borrowing costs and price pressures, the future path will depend on whether the job market can hold up as well as the trajectory of interest rates over the coming months.”
Mr Felsman said Western Australia’s performance across a number of indicators, namely retail spending, unemployment, population growth, housing finance and dwelling starts powered the state to the top of our economic leaderboard .
“Queensland however is nipping at WA’s heels, having shot up to equal second place alongside South Australia, with solid results across the eight economic indicators and strong economic momentum.”
Mr Felsman said the State of the States report also compared the annual growth rates of the eight major indicators, enabling comparisons in terms of more recent economic momentum.
He said this quarter’s report showed:
- Resources-focused Queensland and Western Australia both had the strongest annual economic momentum, and Queensland was now in first spot with Western Australia slipping to second.
- There was little to separate the states with Queensland ranked first or second on five out of the eight key economic indicators. Western Australia was top ranked on three indicators.
- The biggest mover was Victoria, which has jumped to third from seventh place in a sign of improvement in underlying economic activity.
Download the State of the States Report January 2025
