Victoria has outrun New South Wales as the top performing economy in Australia, according to Commsec.
The news was revealed in Commsec’s most recent State of the States report, which noted that Victoria’s strong population growth helped it reach the top spot.
“Strong population growth, underpinning a lift in construction activity, has resulted in Victoria nudging New South Wales out of top spot for economic performance,” commented the Chief Economist at Commsec, Craig James.
“However there is little to separate the two economies, with the common features being firm population growth, higher home building and stronger job markets.”
“While New South Wales has the strongest job market in the nation and is showing good economic growth, a number of housing indicators softened this quarter, including home loans and spending on new plant and equipment.”
This marks the first time in almost four years in which New South Wales has not been ranked the top economy in the country, and the first time ever the report has placed Victoria at number one.
The report focuses on eight key factors – economic growth, retail spending, business investment unemployment, construction work, population growth, housing finance, and dwelling commencements.
Despite not taking the overall top spot, New South Wales ranked first with retail spending and unemployment.
Australian Capital Territory ranked third, following by Tasmania, Queensland, and South Australia.
Northern Territory received the penultimate ranking at seventh position, whilst Western Australia came in last due to its job market and construction work.