Western Australia is Australia’s best performing economy for a second consecutive quarter, posting strong population growth and low relative unemployment.
The state also ranked first in retail spending, housing finance, and started home construction, according to CommSec’s State of the States report. South Australia and Queensland placed joint second in economic performance.
“Overall, economies have slowed in response to higher interest rates and inflation, however Australian states and territories are proving resilient due to a strong job market and solid population growth,” said chief CommSec economist Ryan Felsman.
“As consumers respond to higher borrowing costs and price pressures, the future path will depend on whether the job market can hold up as well as the trajectory of interest rates over the coming months.”
South Australia ranked first in economic growth, 8.4% per cent above its long-term average level of output. The Northern Territory’s growth was the slowest, down 8.9%.
Western Australia reported the strongest job market, with unemployment at 3.4%. Queensland posted the fastest job growth. Employment in all states and territories was above the decade’s average.
Retail spending in all states and territories also remained above the decade’s average. Western Australia took first place, with spending 11.2% above average.
The Northern Territory ranked last place on retail spending, at 2.4% above the decade’s average. However, its annual retail growth of 2.3% was the strongest.
Victoria led in construction work, 16.1% above its decade average. Western Australia was ranked first in annual construction growth.
Queensland led in annual growth rates, followed closely by Western Australia. “Looking ahead, Western Australia and Queensland are expected to continue their recent domination of the rankings in early 2025,” according to the report.