Tasmania remains Australia’s largest economy | Liverpool City Champion
Tasmanian Prime Minister Peter Gutwein has something to shout about when his state goes to the polls this weekend.
For the fifth quarter in a row, the island state topped the State of the States report from Commonwealth Securities as Australia’s best performing economy, followed again by ACT.
“Tasmania and ACT have held strong positions at the top of the performance rankings and little change at the top of the rankings is expected in the coming quarters,” said CommSec economists Craig James and Ryan Felsman.
“However, there is little to separate five of the other seven economies with the Northern Territory still in eighth place.”
Each quarter, they rate each state and territory on eight metrics – economic growth, retail spending, investment in equipment, unemployment, construction work done, population growth, housing finance, and housing starts.
In the last quarter, Tasmania lost ground on retail spending, but gained on both housing finance and relative economic growth.
On a relative basis, ACT fell four places on housing finance, but rose one place in four other categories.
The CommSec expects Western Australia to be the main challenger to the pioneers, benefiting from significant momentum in mining and residential construction.
In the latest ranking, WA improved five spots on housing starts, two positions on relative unemployment and housing finance, and one spot on relative economic growth.
However, the state lost five places on investment in equipment and one place on retail trade.
Victoria moved from third to fourth position, while South Australia is in fifth place from Queensland.
However, CommSec believes that Queensland has an opportunity to move up in the rankings in 2021 thanks to an improving job market, increased in-migration and increased domestic tourism demand.
Australia’s most populous state, NSW, was in seventh place with the Northern Territory in last place.
Australian Associated Press