Western Australia Tops CommSec’s States Report; NSW at Bottom of the List
Western Australia topped the list of broker Commonwealth Securities's quarterly State of the States report. WA displaced the Australian Capital Territory in the roster based on highest growth rate.
The bases of the CommSec report are quarterly economic growth, retail spending, equipment investment, unemployment, construction work, population growth, housing finance and dwelling starts.
On the extreme end of the list is New South Wales.
"Population growth has been above average and that has supported NSW to some extent, but if you look across at other state economies - there's the mining boom in WA, the rebuild in Queensland, Victoria has had healthy dwelling starts, and even Tasmania has low unemployment rates which is driving retail sales activity, and that's much the same for the Northern Territory," Smart Company quoted CommSec economist Savanth Sebastian.
But it is not all bleak for NSW since the state's plan to abolish stamp duty is expected to improve NSW's housing industry and the extended period of interest rate stability could provide momentum also for NSW and Queensland which could flow through to housing.
CommSec Chief Economist Craig James said the ACT's rise in unemployment rate places doubt if the state could maintain its strong economic performance, while he foresees little change in the middle rankings of Victoria, South Australia, Tasmania and Northern Territory.
In response to the CommSec report, NSW Treasurer Mike Baird said he would not attack the report's credibility as the previous NSW government did.
"I think what you need to do with any form or analysis or any economic data put forward is to look at it, see what you can learn from it and then map a way forward," Mr Baird told The Sydney Morning Herald.
"We need a lot of work to get on with the job of getting confidence (back) and getting the economy moving," he added.