At the end of the last financial year we gave you the latest on the statistics provided to us from CommSec, and thought you may be interested to hear how your State is doing this year. Each quarter CommSec reviews each State and Territories performance using these 8 key indicators:
- Economic growth;
- Retail spending;
- Equipment investment;
- Unemployment rates;
- Construction work completed;
- Population growth;
- Housing finance and
- Dwelling commencements.
They use these to rank each State and Territory and measures them against the long term average (generally about 10 years). The Reserve Bank of Australia does a similar kind of report, where they use long term averages to determine the interest rates of the country.
“The State of the States assesses economic performance by looking at the most recent result – such as retail trade or construction – and compares that with the ‘normal’ experience. And by ‘normal experience’, we define this as the decade average” – Craig James – Chief Economist
For the 1st time, Victoria climbed its way to the top – now ranking the highest of the Australian States and Territories due to strong population growth. They have been closing the gap between VIC & NSW on the rankings over the past year and upped the game with more housing construction and dwellings. Victoria exceeded the national average for 6 of the 8 indicators.
NSW dropped back to 2nd as their housing indicators slipped, (however, they do hold the top spot for retail spending). NSW has the strongest job market, sitting at nearly 11% above the decade average.
The ACT held its position as 3rd on the rankings and are still rated as number one for relative housing finance. Tasmania also held its fourth place position, their main driving force this year is they are building a few more houses and interestingly Tasmania ranked 1st on population growth and has the fastest annual growth rate increase of 7.5% but it wasn’t enough to take over the ACT this time.
Queensland is 5th on the rankings. Although there is little difference between this States economy and South Australia’s economy, which came in at a close 6th. South Australian employment rates were the at the lowest in 5 ½ years in the trend term.
Northern Territory came in 7th, followed by Western Australia who ranked 8th. Northern Territory is 3rd ranked on economic growth, but lagged on majority of the indicators. Western Australia was 7th on 3 indicators but on the remainder lagged behind on all other economies. Both of these economies have experienced positive trends since last year, mainly in the investments sector.
How did your State do this Financial Year?
Written by Kristy Thomas