Western Australia Outperforms Northern Territory as Australia's Strongest Economy
By Reissa Su | April 28, 2014 1:41 PM EST
Despite the controversy embroiling Western Australia due to its shark cull policy, the state has emerged as Australia's top performing economy, followed by Northern Territory. Western Australia is leading the country's economy because of its strong growth in construction.
According to CommSec's quarterly State of the States report, South Australia and Tasmania had the lowest-performing economies. Following Western Australia and Northern Territory, NSW came in third place, followed by Queensland and Victoria in fourth and second places, respectively.
CommSec determines the strongest economies using eight key indicators such as economic growth, equipment investment, unemployment, population growth, housing finance and construction work. Craig James, CommSec chief economist, said the Australian economy's rebalancing away from mining investments may soon cause a change in the rankings.
Mr James said Western Australia leads other states, but based on last quarter's data, the figures were close to the economic stats posted by the Northern Territory economy. The mining construction boom is over and replaced by growth in home construction.
The winning and losing economies will change across Australia. Mr James said it is not only about the industries but changes are to be expected in state and territory economies. NSW moved up the economic rankings from fifth to third place after it showed improvements in business investments, economic growth, population growth and dwelling commencements.
When it comes to new housing construction, NSW is the state to beat with an increase of more than 39 per cent on ten-year averages. Mr James said the outlook for housing construction is positive as it continues to strengthen. The housing construction sector continues to enjoy strong demand from investors because of low interest rates.
Employment opportunities are increasing in the Northern Territory and ACT. South Australia has the weakest jobs market with an unemployment rate of nearly 28 per cent in an average of 10 years.
The economic outlook for Tasmania and South Australia continues to be challenging. Mr James said property investors may look for more affordable housing beyond NSW and Victoria.
To contact the editor, e-mail:
Most Popular Slideshows
- G20 Summit Awkward Moments: Putin Yawns, Mystery Bubbles Appear, F18 Drama Ensues
- Real Life ‘Frozen’: Snow Overwhelms The US, Kills 7; More To Come (Pictures)
- Angelina Jolie, Brad Pitt in Sydney for ‘Unbroken’ Red Carpet Premiere [PHOTOS]
- ‘The Walking Dead’ Season 5, Episode 8 Spoilers: Daryl Dixon Is Set To Burn The Place Down in ‘Coda’
Join the Conversation
- Germany, Not U.S., Is The World’s Favorite Country; UK, Canada, Australia Maintain Top 10 Spots
- Air Canada Expands Vancouver Boeing 787 Dreamliners To Beijing, Seoul, Shanghai, Tokyo-Narita Routes
- Canada Consumer Alert: Tim Hortons Prices Of Coffee, Sandwiches To Go Up Effective Nov 26
- Doomsday Seed Vault Safeguards More Marijuana Seeds
- Canada’s Toronto Files Injunction Against Uber Ridesharing Service Provider
- Walmart Early Price Matching Special Event On Nov. 21, 2014 Matches Its Competitors' Black Friday 2014 Prices And Includes Exclusive Deals For Samsung LED HDTVs And iPad Air 2 [WATCH VIDEO]
- US Plane Flying Over Russian Skies Spotted; Vladimir Putin Ready For 'Practical Cooperation' With US
- Microsoft Band Wearable Gadget At $199 Is A Sell-Out
- 6 Big Reasons iPhone 6 Plus is Must-Have Black Friday, Christmas 2014 Buy
- Nexus 6 Release Date And Price Under AT&T, T-Mobile And Sprint Listed
- NATO To Russia: 'Pull Back Your Troops'
- Alleged 'Microsoft Lumia 1030' Front Panel Leaked With Capacitive Buttons; 'Xbox One' Owners To Get Free Goodies On Anniversary