Economic growth has dipped across most of Australia, with NSW and Victoria the only states powering ahead.
ANZ economists say growth in Queensland, Western Australia, Tasmania, South Australia, the ACT and Northern Territory was below average during the 2014/15 financial year.
NSW was the strongest performer followed by Victoria, with economic activity in those two states growing faster than their long-run average rates.
ANZ co-head of Australian economics Cherelle Murphy said NSW and Victoria were benefiting from housing booms and improvements in business and jobs market conditions.
"Given the improvement in activity for NSW and Victoria, which together account for more than half of Australia's GDP, we expect an ongoing, although slow economic recovery for Australia," she said.
The findings were part of ANZ's inaugural Stateometer, which measures the economic performance of the nation's states and territories.
The report found that the end of the mining boom and weakness in the industrial sector were weighing on Western Australia and South Australia.
And while economic activity had picked up in the Northern Territory thanks to improvements in the labour market, a drop in business investment would keep it below average.
ANZ expects activity will pick up in Tasmania and Queensland, thanks to benefits flowing from the housing sector and falling Australian dollar.
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