Western Australia Wins
Based on last month’s CommSec State of the States quarterly report, it seems that hands down, out of the whole country, Western Australia’s economy is the strongest. The way the economic growth test was undertaken was to investigate the following issues: construction work; dwelling commencements; economic growth; equipment investment; housing finance; population growth; retail spending and unemployment.
Why Go West?
So what is the reason for this phenomenon? It seems that Western Australia is where it’s at vis-à-vis mining and engineering that drives exports and commercial construction. As well, according to an article in Nett.com, “Western Australia has displaced the Australian Capital Territory as the strongest state economy in Australia.”
In addition, it seems that when looking at retail spending, Western Australia is the place to go. However, it’s not all good news for the state. Take a look at housing and you’ll see that new dwellings are actually dropping. On the decade’s average, the plummet was recorded at 10 percent. House prices too have dropped “by an average of 7.5 percent over the past year.”
Australian States Faring Badly
While Western Australia might have a lot to smile about in terms of economic growth, the state might want to lend a shoulder to NSW and Queensland. Neither state has been faring well at all although the report did indicate that Queensland does have a good chance of getting better especially with the potential of “construction activity in the wake of recent disasters.”
Okay, but then what about NSW? Apparently its economy can do better and has that chance due to “high population growth and stable housing lending.” Interest rates could become more stable in both NSW and Queensland too. With this, the states could receive “the momentum” they need “injecting interest in the housing sector.”
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