For the first time ever the SA economy has been ranked number one in the nation in new report by CommSec

For the first time ever, CommSec has ranked the South Australian economy as the best-performing in the nation, driven by population growth and housing activity.

South Australia has leapt over Victoria to be officially crowned the best-performing economy in the nation by CommSec, the first time in the 15-year history of its State of the States report that it has taken out the title.

CommSec, an arm of the Commonwealth Bank, publishes its closely watched report today and says SA has jumped into first place after being ranked second in its last report in October.

“For the first time in the history of our reports, South Australia has taken the lead,’’ CommSec chief economist Craig James said.

“Population growth in South Australia has tripled over the past two years, which is showing up in a strong housing market and overall economic activity.’’

But it was not all good news. CommSec also said Adelaide at 5.9 per cent recorded the highest inflation rate in Australia and South Australia’s economic growth over the 12 months to September was only the fifth-best in the nation.

CommSec's State of the State's quarterly report ranks SA as number one.

CommSec ranks the states on eight economic indicators - economic growth, retail spending, equipment investment, unemployment, construction, population growth, housing finance and dwelling commencements - and compares the most recent performances to historical averages.

SA was top in four categories – real economic growth, unemployment, construction work and dwelling starts. It was not necessarily best in raw performance, but ranked top because of its relative success compared to historical averages.

While SA came fifth in the economic growth in the year to September 2023, expanding by 2.9 per cent, that was 9 per cent above its four-year average, better than any other state.

NSW was second, exceeding its average by 8.3 per cent.

The other categories where SA came out on top were construction work, which rose by 23.4 per cent, and trend unemployment which at 3.8 per cent was 36.5 per cent below its 10-year average. SA also came out on top in dwelling starts, even though the number was 2.3 per cent below the 10-year average, it was the still lowest fall in Australia.

Adelaide has been crowned the best-performing economy in the nation by CommSec.

In CommSec’s overall assessment, Victoria was ranked equal second with New South Wales, followed by WA, Tasmania, ACT, Queensland and the Northern Territory.

“The economic performance of Australia’s states and territories is being supported by a solid job market and strong population growth, however the economies have slowed in response to rising interest rates, higher borrowing costs and price pressures,” Mr James said.

SA Premier Peter Malinauskas welcomed the CommSec report.

“The State Government was elected with a clear plan to grow our economy and we

are seeing the results,’’ Mr Malinauskas said. “Significant government investment in housing and infrastructure and thriving exports have helped drive our State’s economic activity.’’

Business SA chief executive Andrew Kay said the ranking was reward for consistent performance.

“We have gone three, two and now to number on position over the past three surveys, reflecting strong jobs growth and an even performance across the areas that are measured,’’ he said.

But he also wanted local business and still faced many challenges.

“Retail demand is slowing and the costs of doing business continue to rise, so coming off a strong base will hopefully help our resilience in overcoming the hurdles ahead..”

Originally published as For the first time ever the SA economy has been ranked number one in the nation in new report by CommSec