Victoria maintained top spot on relative economic growth and over the June quarter lifted 26.6 per cent above its “normal” or decade-average level of output, ahead of NSW, with output 24.7 per cent.
The robust economic standing of the the country’s notoriously strong eastern states, are also being tested by Tasmania, jostling up to second position and knocking NSW’s economy—which had held top stop from 2014 to mid last year—further down the pecking order.
CommSec analysis revealed a widening gap between the next states, Queensland and South Australia, with Western Australia and the Northern Territory remaining as the weakest performing states.
The nation’s sluggish domestic economy has created calls for higher infrastructure spend which has buoyed Victoria, seeing a 25.6 per cent lift above its decade average, thanks in part to a $1 billion budget surplus in its coffers.
NSW construction was next strongest, 23.9 per cent above its decade average, and Tasmania was third.
The CommSec report said that NSW was remained a solid performer in construction but was lagging on relative population growth and dwelling starts.
Tasmania’s economy has climbed to second on a national ladder, largely due to strong figures for home building and home buying.
Tasmania ranked first on relative population growth, dwelling starts and equipment investment and second on housing finance as well as seeing annual population growth lifting at its fastest rate in almost three decades.
While Tasmania’s population had previously increased naturally, through births and deaths, interstate, intrastate and overseas migration was now driving up the number of residents.
A tourism boom, a surge in inter-state migration, an increase in international students and an undersupply of housing are also contributing to Tasmania’s popularity and economic prosperity.
During the mining investment boom Western Australia enjoyed 12 quarters in a row as Australia’s top economy, but the state, which has failed to diversify since, is currently amidst its worst set of economic conditions since the 1990s.