NSW and Vic dominate state economies

A BOOMING housing market and population growth have helped NSW and Victoria maintain their domination over other states.

A BOOMING housing market and population growth have helped NSW and Victoria maintain their domination over other states when it comes to economic performance.

NSW, the most populated state, took out the title for a fifth consecutive quarter, according to CommSec’s State of the States report.

It’s the best performer for population growth, retail trade and housing construction and housing finance, and second to Tasmania on unemployment.

Victoria held onto second place, due to strength in population growth, housing finance and housing construction.

CommSec ranks the states and territories on eight key measures. CommSec chief economist Craig James said the gap between NSW and the rest of the pack continues to widen.

“NSW has solid momentum,” he said.

“Population is above long term averages and that is driving home purchase and construction and retail spending.

“As a result, jobs are being created, keeping the jobless rate stable.” “There is little to separate NSW from Victoria and both economies look to maintain their gap with the other economies.” The Northern Territory held onto third place, but it now shares that ranking with Western Australia, where strong retail trade and economic growth is partly offset by rising unemployment and housing activity.

Queensland is fifth, followed by the ACT, South Australia, then Tasmania.

“The Queensland economy is middle ranking on most criteria but encouragingly the trend unemployment rate is holding at 16 month lows,” Mr James said.

HOW THE STATES FARED

1. NSW — strength in population growth, weakness in economic growth

2. VIC — strength in housing finance, weakness in retail spending

3. NT — strength in equipment spending, weakness in population growth

3. WA — strength in economic growth, weakness in employment

5. QLD — strength in retail spending, weakness in construction

6. ACT — strength in housing finance, weakness in employment

7. SA — strength in population growth, weakness in housing construction

8. TAS — strength in employment, weakness in retail trade

Source: CommSec