South Australia takes top spot in CommSec economic ranking
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The news: South Australia has taken out top spot in CommSec's quarterly assessment of state and territory economies, at a time when all parts of the country are feeling the weight of price pressures and higher interest rates.
The numbers: SA topped the list for the first time in the 14-year history of CommSec's report, unseating Victoria from first place. It ranked first on four of the eight indicators, including how many new homes were under construction and how quickly the economy grew compared to normal.
The context: 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 was in eighth place.
However, the report stated that seven of the eight states are conceivably in line for the top position next quarter, with trends in jobs, consumer spending and housing key for maintaining momentum in Queensland, NSW and Western Australia.
What they said: 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.
The sources: AAP, CommSec report
