Australian economy now 'three-speed'

by Adam Smith23 Jan 2012

Australia's multi-speed economy has again been highlighted in a report showing Western Australia far ahead of the pack in output.

WA has come out as top performer in the CommSec quarterly State of the States report, with an economic output 28% higher than its 10-year average. Strong housing activity led Victoria and the ACT to rank next, with the remaining states and territories occupying the bottom tier in terms of economic growth.

The result has led CommSec chief economist Craig James to label Australia a "three-speed economy". James said any recovery in global economic growth is likely to benefit resources-dependent economies.

NSW recorded the weakest result of all states and territories, at a sluggish 8% above its 10-year average. James called the outlook for the NSW economy "uncertain", with falling retail spending and dwelling starts dogging the state.