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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Head here for the full CommSec Report.
