Western Australia is no longer Australia’s top performer in the economic-stakes, according to a recent report from CommSec.
New South Wales trumped our mineral-rich state, rising from number 3 to the number 1 spot.According to previous CommSec reports, WA had held the number 1 position since July 2011.
What does this mean for WA?
The findings should come as no surprise to many Australians, given the slow pace of the mining and construction sector.Mining production and home building has overtaken the traditionally strong economic player.WA remains second the list, along with the Northern Territory, which is also driven by mining-investment.
Housing a key factor
Momentum in NSW is largely due to its active housing sector.The market is said to be catching up after ‘under-building’ for many years.
Queensland & Victoria
Queensland and Victoria are in the second tier group, according to the CommSec report, with no significant difference in economic performance.Growth in Victoria has been capped by high unemployment, despite a home building sector driven by high population growth.Queensland is said to be constrained by slow population growth and a soft job market.
The bottom 3
The ACT now joins South Australia and Tasmania in the third bracket, coming in after South Australia.The ACT is feeling the effects of a weak job market, not to mention a decrease in consumer confidence.The report does indicate that South Australia and Tasmania’s unemployment rates are easing, which is encouraging.
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