Media release – Commonwealth Bank, 1 May 2023
Tasmania back on top: CommSec State of the States
Tasmania is once again the country’s best performing economy, according to CommSec’s State of the States report – a quarterly ranking of economic performance.
A strong job market and more new dwelling builds has put Tasmania back in the number one spot. It is the 11th time in three years that Tasmania has led the country as the best performing economy.
There is little to separate other states in the latest report with Queensland and South Australia equal second, followed by NSW in fourth, Victoria and Western Australia in equal fifth. The ACT has slipped from sixth to seventh, while the Northern Territory remains in eighth position.
The CommSec State of the States report uses the latest available information to provide an economic snapshot of each state and territory by comparing eight key indicators: economic growth, retail spending, equipment investment, unemployment, construction, population growth, housing finance and dwelling commencements.
CommSec Chief Economist Craig James said Tasmania leads the other states and territories on three of the eight indicators with a strong job market, high dwelling starts and solid equipment investment. It is second or third on three indictors: housing finance, economic growth and construction work.
“Australia’s states and territory are all close on the performance indicators. Looking ahead, sectors like construction, education and consumer spending are likely to be supported by high rates of in-bound migration,” Mr James said.
“We anticipate ongoing growth in the Tasmania, Queensland and South Australia economies in the next six months and that these states will remain at the top of the leader board.”
Trend unemployment in Tasmania was 3.8 per cent in March, which is 37.7 per cent below the decade average. Dwelling starts, which are driven in part by population growth, were 17.8 per cent above the decade average in Tasmania.
Despite ranking last, the Northern Territory has recorded the fastest job growth in the 12 months to March 2023, up 5.1 per cent. This provides scope for improvement on consumer spending and housing demand.
_1200x628px.jpg)
State of the States overview.State and territory highlights
- Tasmania ranked first on dwelling starts, equipment investment and relative unemployment.
- South Australia ranked first on construction work.
- Queensland ranked first on relative population growth.
- NSW ranked third on retail trade, equipment investment and relative unemployment.
- Victoria ranked first on retail spending.
- Western Australia ranked first on relative economic growth.
- The ACT ranked first on housing finance.
- The Northern Territory ranked fourth on relative economic growth and relative population growth.
Annual growth rates
- Annual changes in economic indicators are useful for measuring economic momentum.
- Of the eight indicators assessed, Tasmania, the Northern Territory and Queensland each led annual changes on two of the eight economic indicators. And the ACT and Western Australia each led on one indicator.
- Notably, when looking across annual growth rates, NSW exceeded the national average on six of the eight indicators. Next best was Queensland, exceeding the national annual growth rate on five of the eight indicators.
- South Australia, Tasmania and the ACT led the national average on four indicators. Western Australia, the Northern Territory and Victoria exceeded the national average growth rate on three indicators.
Note to editors: interviews with Craig James can be requested via the CBA Media team on (02) 9118 6919 or [email protected].
About the CommSec State of the States Report
The State of the States report uses the most recent economic data available, however while some data relates to the September quarter (population), other data – such as unemployment – is timelier, covering the month of March.
CommSec, the digital broking arm of Australia’s largest bank, assesses the performance of each state and territory on a quarterly basis using eight key indicators. Those indicators include: economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance, and dwelling commencements.
Just as the Reserve Bank uses long-term averages to determine the level of “normal” interest rates, CommSec compares the key indicators to decade averages; that is, against “normal” performance. CommSec also compares annual growth rates for eight key indicators for all states and territories, in addition to Australia as a whole, enabling a comparison of economic momentum.
Media release – Jeremy Rockliff, Premier; Michael Ferguson, Treasurer, 1 May 2023
Tasmanian economy back on top according to Commsec
With the only Liberal Government in Australia at the helm, Tasmania’s economy is once again leading the nation according to CommSec’s May 2023 State of the States report.
This strong result once again shows that the Rockliff Liberal Government’s plan for Tasmania is working, as our State’s economy continues to break records.
Premier Jeremy Rockliff said Tasmania’s economy has now led the nation for 11 out of the previous 13 quarters and has improved on all eight performance indicators in the report since the 2014 election.
“Our Government is getting things done to build a strong economy, and this outstanding result is more proof that our plan is working,” the Premier said.
“We are kicking goals on a number of fronts in the report, including dwelling starts, and construction work – demonstrating that our focus on building more homes quicker is working.
“Our plan will build on these gains as we create more jobs, build even more homes, invest more into healthcare, and grow an even more resilient and diverse economy for the future.
“It’s only by having a strong economy that we can reinvest more into the things Tasmanians care about like health, housing and easing cost of living pressures, and that’s exactly what we’re doing.”
Treasurer Michael Ferguson said Tasmania leads the nation on dwelling starts with a 17.8 per cent increase over the decade average, compared with the next best state, along with ranking second for housing finance.
“This not only confirms our investment to build more social and affordable homes is working, but the private sector is playing its part – thanks to the strong actions we have taken to make Tasmania a job-creating environment that encourages investment and promotes growth,” the Treasurer said.
“Construction work is also 13.5 per cent above the decade average, as we roll out our strong infrastructure program.
“Tasmania has also recorded the largest improvement in the unemployment rate, with our record 3.8 per cent unemployment representing a 37.7 per cent improvement over the decade average.
“This shows just how far we’ve come since the disastrous Labor-Green Government, when unemployment rates were as high as 7.9 per cent..
“This comes off the back of recent ABS employment data which showed that a record high of 291,800 Tasmanians now in work, representing the equal second highest monthly increase in the nation.
“These are more than just numbers – each of these jobs represents a real Tasmanian family that now has more opportunities to do the things they want and plan for the future with confidence.’
“More than 11,600 more Tasmanians are in jobs compared to the same time last year, and 56,700 compared to when the Labor-Green Government was voted out in 2014.
“There is no doubt that Tasmania’s economic performance leads the nation, and Tasmanians are better off on every metric under the Rockliff Liberal Government.”
Media release – Shane Broad MP, Shadow Treasurer, 30 April 2023
Economic mismanagement will cost Tasmanians
While the Rockliff Government will applaud the results of the latest CommSec report, the report is meaningless for people struggling with the cost of living crisis.
Each day, Labor is hearing stories of people choosing between heating or eating, forgoing their vital medications or stressing to find a permanent place to call home.
The most recent Deloitte Access Economic Report findings paint a truer picture of Tasmania with growth for 2022-23 forecast to be 0.4 per cent, the lowest of all states and behind only the Northern Territory.
With mortgages increasing, slow income growth, inflation and unemployment, it demonstrates that the Liberal Government has done little for Tasmania in its decade at the helm apart from racking up record Budget debt and deficits.
Sensible financial management, health, housing and cost of living are key priorities for Labor and a Tasmanian Labor Government would immediately get to work fixing the mess the Liberal Government has created during its 10 years in office.
