NSW takes out top spot in CommSec’s State of the States report, with Victoria sneaking up behind

NSW still has the best performing economy in Australia. It’s dominating most other states, but one competitor is snapping at its heels.

Sydney is boosting NSW’s economy. Picture: Craig Greenhill

NEW South Wales has again taken out the top spot as the nation’s best performing economy.

According to CommSec’s State of the States report, NSW continues to dominate in population growth, employment, retail spending and housing.

NSW Treasurer Gladys Berejiklian said the state had “solid momentum” and would continue to deliver growth.

“We are building much-needed infrastructure across the state and supporting businesses to invest and grow. This is generating economic activity and jobs creation,” she said on Monday.

In the quarterly review, Victoria came in second place with the ACT and Northern Territory in third and fourth places respectively. Queensland leapfrogged Western Australia to be placed fifth while South Australia and Tasmania languished at the table’s tail end.

The Commonwealth Bank’s economics team rates each state on metrics, such as economic and population growth, unemployment, retail spending, housing finance, construction work completed and investment in equipment against their long-term averages, reports the Herald Sun.

A booming Melbourne property market boosted Victoria’s fortunes.

“Victoria edged ahead of NSW for housing finance, with the number of (lending) commitments 21.6 per cent above the long-term average,” CommSec chief economist Craig James said.

Victoria isn’t far behind NSW when it comes to growth. Picture: Eugene Hyland

While going up the table, Queensland’s rise was largely due to a downturn in WA which suffered due to joblessness and population migration.

CommSec said high house prices in Sydney should be encouraging people to move north — but it wasn’t.

“Brisbane is more affordable, but no one is willing to make the move and the lack of jobs is the key,” said CommSec economist Savanth Sebastian.

Tasmania might be at the bottom of the table but it was looking up, the report said. The state’s job market ranked fourth and Tasmania is ranked fifth for construction work. However, it was the lower dollar that was providing the biggest fillip, encouraging more tourists to visit the Apple Isle.

Treasurer Peter Gutwein welcomed the findings of the report, but told The Mercury there remained “a lot of work to do”.

“The report highlights the strength in our tourism and hospitality sector, building activity and population growth as positives for the state, and, importantly, it rates jobs as our main positive.”