State of the States: Report shows Tassie on top

Tasmania has cemented its lead as the best performing state in the country for economic growth for the fifth quarter in a row, the latest CommSec report reveals. SEE WHY WE’RE ON TOP >>

• Report shows economic revival: Gutwein
• NT report card grim

TASMANIA has consolidated its position as the best performing state in Australia in the latest CommSec State of the States report.

The fastest annual growth in home prices, relative population growth, the leading number of dwelling starts and investment in equipment underpinned Tasmania’s performance.

It is now the fifth quarter in a row Tasmania has held the mantle of Australia’s best performing economy.

And in the three months till the end of March it led on three of the eight economic indicators used by CommSec to compile its list.

CommSec Chief Economist Craig James. PICTURE: JUSTIN BRIERTY

The ACT is in second place with the Northern Territory lagging at the bottom.

CommSec Chief Economist Craig James said Tasmania and the ACT held firmly to the top positions due to above-average population growth in Tasmania and the ACT’s strong job market.

“As a result, it’s unlikely we’ll see any considerable change at the top of the rankings in the near future,” Mr James said.

Each quarter CommSec analyses eight key indicators – economic growth; retail spending; equipment investment; unemployment; construction work done; population growth; housing finance and dwelling commencements.

While Tasmania has consolidated its top position, the gap in economic performance of the states and territories continues to narrow.

“Over the quarter Tasmania lost one place on retail trade but gained one place on both housing finance and relative economic growth,” CommSec said.

The seasonally adjusted jobless rates in Tasmania and Queensland were both 5.9 per cent in March.

Real estate agent for sale sign and chalk blackboard

However Tasmania’s unemployment rate is 9.3 per cent below its decade average, while the Queensland jobless rate is 4.3 per cent below its decade average.

So that means Tasmania ranks above Queensland on that indicator.

The State ranked third of housing finance and economic growth and second on retail spending (up 19.1 per cent on the decade average.)

Tasmania was placed second when it came to the amount of construction work being carried out – up 13.4 per cent. The State was ranked third on population growth (almost 1 per cent per annum) which was a massive 61.9 per cent up on the decade average.

Premier Peter Gutwein said the report was a vindication of his government’s strong economic management, and plan to Secure Tasmania’s Future.

“Now more than ever we need a strong, stable majority government to keep our state powering ahead. Minority government leads to lower confidence, less investment and job losses.

“It is clear Labor cannot possibly win majority government but they might be able to cobble together a minority government with the Greens and Independents.”

Originally published as State of the States: Report shows Tassie on top