Western Australia has made a huge leap in terms of economic performance over the first quarter of the year, overtaking the growth reported in some states, according to the latest CommSec State of the States report.
Western Australia now ranks third among all states, its highest placement in six years. During the previous quarter, it placed sixth in the overall economic rankings. The study showed that the state ranks second in three indicators, which include economic growth, dwelling commencements, and unemployment.
"The main challenge will come from Western Australia, which improved five places on dwelling starts, two positions on both relative unemployment and housing finance and one place on relative economic growth,” said Craig James, chief economist at CommSec. “Despite these gains, Western Australia fell five places on equipment investment and one place on retail trade.”
He furthered: "The West Australian economy has significant momentum provided by mining and home building. In fact, skill shortages are identified in many building trades."
Construction work, however, was the state’s biggest concern. The state’s construction work indicator has fallen by 43.6% below the decade average.
Over the quarter, Tasmania and ACT maintained their position as the top states for economic growth. Tasmania has placed first in the rankings for five consecutive quarters while ACT continued its best performance in the economic rankings over the past four years.
However, the report said housing finance remains as Tasmania's weakness point while population growth continues to be ACT's biggest concern.
"Tasmania and the ACT have firmly held their positions at the top of the performance rankings due to above-average population growth in Tasmania, and a strong job market in the ACT. As a result, it’s unlikely we’ll see any considerable change at the top of the rankings in the near future," James said.
Victoria placed fourth in the overall rankings. It led the construction works indicator and housing finance. South Australia followed, with Queensland, NSW, and Northern Territory trailing behind.