Queensland ranked fifth in CommSec’s State of the States report

Queensland has not covered itself in glory in the latest State of the States report but strong population growth could help fix some of its economic woes.

Queensland ranks fifth in CommSec’s State of the States report.

QUEENSLAND is still clawing back its economic chips with strong population growth as its trump card, according to the latest CommSec State of the States report.

The Sunshine State’s economy was rated Australia’s third best in terms of growth, pushing it back up into fifth spot in the report’s overall rankings of economic performance nationally.

Queensland’s move up CommSec’s leaderboard puts it ahead of South Australia, Western Australia and Northern Territory.

Victoria has grabbed sole possession of the top position as the nation’s best performing economy for the first time in three quarterly surveys.

New South Wales has dropped from equal first to second spot followed by Tasmania and ACT.

CommSec chief economist Craig James said although Queensland was still sitting in the bottom half of the rankings, its economic revival had remained on track.

“There’s not a lot to separate Queensland and South Australia,” he said.

“But Queensland certainly continues the improvement we’ve seen over the last two or three surveys, and particularly what we’re seeing is population growth driving growth in retail spending.”

CommSec’s figures compare the most recent performance of each state with a decade average across eight key indicators.

Its quarterly report placed Queensland third for both economic and population growth, fifth for retail spending and business activity and sixth for construction, dwelling starts, housing finance and unemployment.

Acting Treasurer Mark Bailey said the CommSec report showed that in significant areas Queensland’s economic plan was working.

“Economic growth in Queensland is set to outperform Australia for the third consecutive year,” he said.

“You only get growth in retail spend when people have jobs and since being elected the Palaszczuk Government has created more than 200,000 jobs.”

According to CommSec’s latest data, Queensland’s economic activity was 20.6 per cent above the decade average with population growth (up 5.2 per cent) boosting retail spending (up 9.4 per cent).

Meanwhile, construction, dwelling starts as well as housing finance were down — 21.7 per cent, 9.97 per cent and 10.8 per cent, respectively — and unemployment was 6 per cent higher against the decade average. Business investment in plant and equipment (up 0.8 per cent) was at four-year highs.