South Australia has recently been recognised as the second-best economy in Australia, according to the Commonwealth Bank’s State of States report, while Western Australia maintains its position at the top for the fourth consecutive quarter. In contrast, both Victoria and New South Wales have experienced a decline in their economic standings.
After beginning the year with strong performance, South Australia has advanced from fourth to second place, spurred by increased consumer spending, business investment, and robust construction activities. The CommSec report evaluates the economic performance of each state by analysing eight economic indicators and comparing current data to ten-year averages.
Western Australia continues to excel, outperforming other states by topping four out of the eight key economic measures. The state remains strong in population growth, with CommSec’s chief economist, Ryan Felsman, noting its leading positions in retail trade, housing finance, and business investment. South Australia stands out by ranking first in both construction work and dwelling starts.
The overall economic landscape in Australia is improving, supported by factors such as easing inflation, lower interest rates, rising real wages, and strong government expenditure alongside a solid labour market. However, Victoria has seen a significant drop in its ranking, falling from second to fourth place, primarily due to rising unemployment rates, despite the fact that retail spending remains 10% higher than the decade average. Similarly, New South Wales has dropped from fifth to sixth position, highlighting the growing economic disparities among the states.
In summary, while South Australia is gaining momentum and Western Australia continues to lead, the more populous states of Victoria and New South Wales are facing economic challenges.