Victoria has left economists surprised after surging from fifth to first in analysis comparing the economic performance of each Australian jurisdiction.
For the first time in more than a year, the jurisdiction took top spot in the quarterly CommSec state of the states report, the latest of which was released on Monday.
The four position rise has been attributed to the “strong economic growth, solid retail spending and business activity” recorded in Victoria across the quarter.
“Economic activity in Victoria in the June quarter was 7.7 per cent above its four-year average level of output and equipment investment was at record highs as well – up 19.7 per cent on the decade average,” CommSec Chief Economist Craig James said.
“While the lift from fifth to first is surprising, we knew coming into this quarter there was little to separate the economic performance of the states and territories.
Victoria has left economists surprised after surging from fifth to first in analysis comparing the economic performance of each Australian jurisdiction.
For the first time in more than a year, the jurisdiction took top spot in the quarterly CommSec state of the states report, the latest of which was released on Monday.
The four position rise has been attributed to the “strong economic growth, solid retail spending and business activity” recorded in Victoria across the quarter.
“Economic activity in Victoria in the June quarter was 7.7 per cent above its four-year average level of output and equipment investment was at record highs as well – up 19.7 per cent on the decade average,” CommSec Chief Economist Craig James said.
“While the lift from fifth to first is surprising, we knew coming into this quarter there was little to separate the economic performance of the states and territories.
Victoria has the best performing economy in the nation, according to a new quarterly report. Picture: David Caird
“We expect Victoria to face challenges from the other economies in the period ahead.”
The report compares jurisdictions using eight key indicators – economic growth, retail spending, equipment investment, unemployment, construction, population growth, housing finance and dwelling commencements.
New South Wales was second on economic growth after Victoria, followed by Queensland, South Australia, the Australian Capital Territory, Western Australia, Tasmania and the Northern Territory.
CommSec measures economic growth “using real state demand plus real net trade in goods and services in seasonally adjusted terms”.
Victoria was also the best in the nation for the completion of construction work – up 19.7 per cent in the quarter compared to the state’s decade average.
That is based on the analysis of the “total real value of residential, commercial and engineering work completed in trend terms in the June quarter 2023”.
CommSec further noted Victoria’s population grew at its fastest rate in seven years, while the state was second in the nation for jobs growth.
The Australian Bureau of Statistics earlier this month revealed Victoria had an unemployment rate of 3.5 per cent.
“The near record number of Victorians in work is the product of a strong economy that is providing confidence for businesses to hire new workers,” Victorian Treasurer Tim Pallas said on Monday.
“Robust economic activity means there are opportunities for existing workers and young people entering the jobs market for the first time.
“Opportunity is so important and that’s what Victoria is all about.”
(SKY NEWS)
