CommSec has released a report recently that shows New South Wales still remains the best performing economy despite the economic turmoil that Australia has been facing.
The State of the States report took into consideration eight parameters on which it rated the states across Australia in terms of economic balance. The eight factors are economic growth, unemployment, housing finance, retail expenditure, construction work, residential project commencements, equipment investment and population growth. Following NSW was Victoria that also indicated a strong economic growth in the first quarter of 2016.
While NSW ranked the highest in terms of population growth, unemployment, retail spending and dwelling commencements, Victoria was up with strong housing finance and consistent growth in terms of other factors. CommSec economist Savanth Sebastian confirmed that Victoria was the strongest of all Aussie states as far as housing finance was concerned with a substantial growth recorded for other parameters, such as population growth, dwelling commencement, unemployment rate, among others.
“It’s very likely that Victoria will edge even closer to New South Wales,” he said as quoted by the ABC. “Maybe in six to nine months’ time, if the trend and the momentum continues, Victoria may surpass the New South Wales economy.”
The ACT grabbed the third place while the Northern Territory was at the fourth place, followed by Queensland and Western Australia as fifth and sixth in the ranks of the Australian economy. Sebastian noted the huge reformation in the West Australian status.
“Over the past couple of quarters, the Western Australian economy has continued to shift down in terms of the rankings,” he said. “I think those concerns around the mining boom — the construction phase coming to an end — it’s creating a bit more concern around unemployment and in particular, with population growth slowing as well.”
On the list of the best performing economies, Tasmania and South Australia were the worst performing states for the first quarter of 2016, according to Business Insider. CommSec, however, has advised that a lower value of the Aussie dollar might help these states enhance their tourism and education facilities that could help the states generate significant revenue.