Queensland has toppled Tasmania to take the lead in Commsec’s State of the States report, reflecting strong economic performance in the Sunshine State.
It’s the first time in the 13-year history of the report that Queensland has come out on top in the quarterly surveys, and comes off the back of strong population growth, employment and a booming energy market.
Tasmania has slipped to second, while South Australia has overtaken New South Wales and Victoria to rise to third place.
The report is an economic snapshot of each region, looking at economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and home commencements.
CommSec chief economist Craig James said Queensland had been buoyed by its mining, energy and tourism sectors and “solid internal migration”.
“Queensland has a strong report card, ranking first on relative population growth and relative unemployment, and is second ranked on three of the other eight economic indicators,” James said.
“When looking at annual growth rates to get a guide on economic momentum, Queensland had annual rates that exceeded the national average on five of the eight indicators.
“In terms of future economic performance for all state and territory economies, much will depend on the performance of housing and job markets at a time of higher interest rates.”
Meanwhile, Western Australia has recorded a 36.6 per cent economic growth rate to September 2022 above its ‘normal’ decade-average level of output, while Queensland took out the second spot at 34.7 per cent.
Queensland has the strongest job market of all the states with unemployment at 3.6 per cent in December 2022, 39.4 per cent below the decade average.
But home commencements have skyrocketed in South Australia, knocking the Australian Capital Territory from its pedestal. In the September quarter starts were up 22.6 per cent on the decade average in South Australia, driven by population growth and housing finance.
According to the report the two focal points in the coming months will be housing and job markets. A solid job market will provide fuel for housing purchase and retail trade, while the reopening of China will boost resources and tourism sectors.
