Largest state’s economy ranked nation’s best performer
Australia’s largest state has held off a fast-finishing Queensland to remain the country’s best-performing economy in the latest CommSec State of the States report.
Now in its 16th year, the quarterly report tracks eight key economic indicators and compares the latest data with decade averages to rank Australia’s six states and two territories.
WA topped five of the eight economic indicators to lead the national performance rankings in the September 2024 report for the second quarter in a row – and only the second time in a decade.
While economies had slowed in response to higher interest rates and inflation, CommSec chief economist Ryan Felsman said states and territories had proved 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,” he said.
“As expected, the interest rate-sensitive south-eastern states and territories remained in a tight cluster mid-table.”
Queensland moved up from third to join South Australia in second spot, Victoria remained in fourth place and Tasmania was steady in fifth.
NSW leapfrogged the ACT from seventh to sixth, with the Northern Territory remaining eighth.
WA’s top performances across retail spending, unemployment, population growth, housing finance and dwelling starts helped it retain its leading position.
SA led the nation on real economic growth, Victoria was strongest for construction work, and the NT ranked first for equipment investment.
Perth had the highest inflation rate (3.8 per cent) in the September 2024 quarter and Tasmania had the fastest wage growth (4.0 per cent).
National home prices rose by 4.9 per cent, with WA recording the biggest annual rise – 19.1 per cent.
The report also compared the annual growth rates of the eight major indicators.
Resources-focused Queensland and WA had the strongest annual economic momentum, with little separating them as Queensland ranked first or second for five indicators.
The biggest mover was Victoria, which jumped from seventh to third in a sign the state’s underlying economic activity was improving.
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