Tasmania takes the lead in economic performance

The Apple Isle has peeled Queensland off the top of the economic performance tree, as Tasmania branches out on housing and jobs.

CommSec’s latest quarterly State of the States report released on Monday showed economies were being supported by strong job and commodity markets at a time of rising interest rates.

All states were performing well, backed by strong population growth, still-solid consumer spending, elevated commodity prices, stabilising home prices and low unemployment.

But how the state economies perform in the second half of the year will largely rely on the future path of spending, housing and job markets.

Tasmania’s rise to the top of the list was based on dwelling starts, relative unemployment and relative economic growth.

It ranks first on equipment investment, dwelling starts and relative unemployment and is second on housing finance.

In joint second position are last survey’s winner Queensland and South Australia.

NSW remains in fourth position followed by Victoria and Western Australia in joint fifth, followed by the ACT, with the Northern Territory in last position.

Queensland leads on relative population growth, while the ACT tops housing finance.

WA’s best performance is in terms of relative economic growth, while SA leads on construction work done and Victoria is top ranked on retail spending.

“Certainly the strength in jobs and housing starts was important in lifting Tasmania to top spot again and in consolidating South Australia in the top three economies,” the report said.

“Queensland lost ground to these states on those indicators.”

However, the report noted a fired-up Chinese economy could benefit resources and tourism-heavy states such as Queensland.