South Australia makes history as it's crowned nation’s economic leader
Brooke Cooper | Jan 29, 2024 17:03
The southern state, known for its food and wine, overtook Victoria to take out the top spot in CommSec’s latest State of the States report for the first time in the survey's 15-year history.
- South Australia came out on top of the latest State of the States report, measuring economic performance
- The state outperformed all others in four of eight indicators, including economic growth and employment
- Though, it was also found to have the highest inflation rate and one of the slowest rates of wage growth
- However, Western Australia exhibited the most growth over the 12-months prior
The Victorian economy is now tied with that of NSW for second best, while Western Australia’s jumped to fourth position.
According to SA Premier Peter Malinauskas, the triumph “isn’t an accident”.
“The State Government was elected with a clear plan to grow our economy and we are seeing the results,” he said.
“Significant government investment in housing and infrastructure and thriving exports have helped drive our state’s economic activity.”
It wasn’t all good news for South Australian residents, though.
Adelaide was also found to have the nation’s highest inflation rate, at 5.9%, while wage growth came in at just 3.9%, besting only Victoria (3.7%) and NSW (3.8%).
The State of the States report assesses economic performance with eight indicators, comparing each to a state’s ‘normal experience’ – that is, a 10-year average or, in the case of measuring economic growth, a four-year average.
SA topped the lot in four out of the eight indicators, one of which was relative economic growth.
Economic activity in SA was 9% above its four-year average over the September quarter, though it lifted just 2.9% on an annual basis.
The state was also found to have the strongest relative jobs market, with unemployment 36.5% lower than its decade average.
Get The App
When it came to construction and home builds, the state led the way as well.
It posted a 23.4% increase on its decade average number of construction completions and a drop of just 2.3% on its decade average number of dwelling starts.
“Population growth in South Australia has tripled over the past two years, which is showing up in a strong housing market and overall economic activity,” CommSec chief economist Craig James said.
“However, South Australia can’t rest easily.
“It is likely the state will face challenges from NSW and Victoria in the period ahead.”
When it came to wage growth, Queensland led the nation, recording an increase of 4.7% over the year to the September quarter.
The Sunshine State also saw the biggest increase in new home loans, coming in at 24.6% above its 10-year average.
h2 WA in top spot when it comes to annual growth/h2WA’s property market isn’t the only thing booming in the mining state (though, house prices there rose 14% over the year to December).
The state saw a 4.3% uptick in employment growth, a 16.4% jump in construction work, and a 3.1% climb in population growth over the prior 12-months.
That’s compared to the national average of 3%, 9.8%, and 2.4% respectively.
Going forward, WA is one to watch, as it joins NSW and Queensland in exhibiting momentum in jobs, consumer spending, and housing trends.
Meanwhile, CommSec notes that seven of Australia's eight states and territories could be gunning for the gold in the next quarterly State of the States report.
However, South Australia, NSW, and Victoria appear to be the most likely contenders.
"South Australia makes history as it's crowned nation’s economic leader " was originally published on Savings.com.au and was republished with permission.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.