South Australia nabs top spot in state economic ranking
South Australia has overtaken other states on economic performance at a time when all corners of the nation are feeling the weight of price pressures and higher interest rates.
The top mark was the first for SA in the 14-year history of CommSec’s quarterly assessment of state and territory economies, and unseated Victoria from first place.
SA took out the number one position after ranking first on four of the eight indicators, including how many new homes were under construction and how quickly the economy grew compared to normal.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.The report, which judges performance relative to the usual state of affairs in each jurisdiction, had Victoria and NSW in equal second place.
Western Australia came in next, buoyed by the strongest population growth of any state when compared to its decade long average.
Tasmania was fifth, the Australian Capital Territory sixth, Queensland seventh and Northern Territory in eighth place.
CommSec chief economist Craig James said higher borrowing costs and inflation were hurting state and territory economies, while a solid jobs market and strong population growth was working in the opposite direction.
“The future path will depend on the response of inflation to higher interest rates,” he explained.
Trends in jobs, consumer spending and housing would be key for maintaining momentum in Queensland, NSW and Western Australia, with seven of the eight states conceivably in line for the top position next quarter.
“But South Australia, NSW and Victoria are most likely to challenge for top spot,” the State of the States report said.
