NSW has held its ranking as the strongest-performing state in the country thanks to its growing population, housing market and retail trade, according to a new report.
Victoria remains at No.2 in the latest issue of the quarterly CommSec State of the States report, again driven by population growth, dwelling starts and housing finance.
On the economic league table of Australia's states and territories, the two most-populous eastern states remain the best performers, followed by the Northern Territory, Western Australia, Queensland, the ACT, South Australia and, carrying the wooden spoon for now at least, Tasmania.
The State of the States report surveys key indicators including economic growth, retail spending, dwelling starts, population growth, unemployment and housing finance for each state against their averages of the past decade to take a reading of their robustness.
The mix of measures throws up a confusing picture: NSW and Victoria dominate in population growth, housing finance and dwelling starts but rank fifth and fourth on actual economic growth - testament to the importance housing has in driving economies after the resources boom.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Tail-ender Tasmania actually posted the nation's best unemployment performance: even though the jobless rate is 6.2 per cent, it is only just above the 10-year average for the island state.
Western Australia also has a 6.2 per cent unemployment rate but is the worst performer in the State of the States report because that represents a 45.2 per cent increase in the state's jobless rate since the mining boom went bust.
CommSec chief economist Craig James said the gap between NSW and the rest of the pack has widened.
"NSW has solid momentum," he said.
"Population is above long term averages and that is driving home purchase and construction and retail spending.
"As a result, jobs are being created, keeping the jobless rate stable."
Looking ahead, CommSec has NSW and Victoria maintaining their momentum while mining-heavy NT and WA are slowing.
"The mining and energy sectors are transitioning from the investment phase to production," CommSec said.
"Unlike NSW and Victoria, housing demand (in NT and WA) is not filling the void."
