WA has maintained its spot at the top of the CommSec State of the States report for the second quarter running, ranking first in five of eight economic indicators.
WA has maintained its spot at the top of the CommSec State of the States report for the second quarter running, ranking first in five of eight economic indicators.
WA metrics which led the nation and were up over the long-term average included retail spend (11.2 per cent), unemployment (down 34.7 per cent), population growth (up 2.82 per cent), Housing finance (up 39.4 per cent) and dwelling starts (up 10.8 per cent).
Despite the strong results, WA’s economic growth (0.7 per cent) was the slowest of all states, and above only the Northern Territory (-3.2 per cent).
WA experienced the highest inflation in the September quarter, up 3.8 per cent compared to SA’s 3.2 per cent, Victoria’s 3 per cent and NSW’s 2.9 per cent.
Annual home price growth in WA far outpaced the national average, up 19.1 per cent compared to the second highest growth, in South Australia, of 13.1 per cent.
The report assesses economic performance by looking at the most recent results and comparing them with the ‘normal experience’, which CommSec define as the decade average.
When focusing on annual growth rates, WA slips into second place, with Queensland taking the top spot – ranking first or second in five of eight indicators over the past year.
CommSec chief economist Ryan Felsman said overall, economies had slowed in response to higher interest rates and inflation.
“However, Australia states and territories are proving resilient due to a strong job market and solid population growth,” he said.
“As consumers respond top higher borrowing costs and price pressures, the future path will depend on whether the job market can hold up, as well as the trajectory of interest rates over the coming months.”
Mr Felsman said interest-rate sensitive south-eastern states remained in a tight cluster mid-table.
“Western Australia’s performance across a number of indicators, namely retail spending, unemployment, population growth, housing finance and dwelling starts powered the state to the top of our economic leaderboard for the second quarter in a row,” he said.
“Queensland however is nipping at WA’s heels, having shot up to equal second place alongside South Australia, with solid results across the eight economic indicators and strong economic momentum.”
Looking ahead, the report identified that WA and Queensland were poised to continue their domination in the rankings throughout the first half of 2025.
