Victoria’s COVID-19 lockdown has seen the state sink to third position compared to other Australian jurisdictions on key economic performance indicators, its lowest level in over three years.
But it remains above the other big economic states of NSW and Queensland, the latest quarterly Commonwealth Securities state of states report shows.
Every quarter CommSec measures the performance of the states through eight key indicators – economic growth, retail spending, equipment investment, unemployment, construction work, population growth, housing finance and dwelling commencements.
For the first time, Tasmania has topped the rankings for the third consecutive quarter, buoyed by new home building and demand for mortgages.
The ACT rose to second position, its highest ranking in just over three years based on its relative economic growth performance, falling unemployment and investment by business.
Victoria lost ground on falling retail spending and demand for home loans.
“The big improvers over the past quarter were the ACT, South Australia and Western Australia. The biggest losers were Victoria, NSW and Queensland,” CommSec chief economist Craig James said.
“Based on the latest economic data, Victoria has potential to slip further down the performance rankings while Tasmania and the ACT consolidate positions in the top two spots.”
NSW shares equal fourth spot with South Australia, its highest position in three years..
The nation’s largest state was weighed down by both its relative economic growth and unemployment performance, while SA was aided by its unemployment position and retail spending.
Western Australia enjoyed its highest ranking since April 2016, joining Queensland and the Northern Territory in sixth position.
WA improved on its relative unemployment performance and business investment, the same factors that undermined Queensland. The NT also saw an improvement in unemployment.
“The coronavirus crisis is causing mixed operating conditions across industries and across states and territories,” Mr James said.
“A key factor driving the relative success in economic performance has been the relative success in suppressing the virus.”