Apple Isle pips other states for economic strength
Paul Osborne |
Tasmania has kept its spot as the best performing state economy amid a slowdown across the nation.
CommSec’s State of the States report released on Monday found economic performances were being supported by a solid job market and strong population growth at a time of rising interest rates.
But state and territory economies were slowing in response to higher borrowing costs and price pressures.
The Reserve Bank has been seeking to take the heat out of the economy through a series of rate rises since May 2022.
“The future path of economies will depend on the response of inflation to higher interest rates,” CommSec said.
Tasmania improved its ranking on retail spending and ranked first on equipment spending and dwelling starts.
NSW remains in second position, ranking first on relative unemployment and coming second or third on four indicators.
Third-placed South Australia ranked first on relative population growth.
Its 1.58 per cent annual population growth rate was 64.1 per cent above the decade average for the year to the December quarter 2022.
Tasmania’s annual population growth was its weakest in six years.
Queensland was placed fourth, leading the nation in terms of home loans.
Western Australia came in at fifth, but was ahead of all other states and territories on relative economic growth.
Its economic activity in the year to March 2023 was 44.1 per cent above its decade-average level of output.
Sixth-placed Victoria led the nation on construction work, while the ACT ranked seventh ahead of the Northern Territory.
However, the national capital leapt from fourth to first position in terms of retail spending, up 15.3 per cent in the March quarter on its decade-average levels.
Annual growth of real retail trade was up 2.7 per cent in the ACT, the strongest of all the states and territories.
AAP
