HIGH population growth and associated infrastructure spending have been listed as factors in Victoria being rated the top state for growth in the Commonwealth, according to a new report.
Commsec’s State of the States report for the quarter just gone showed Victoria had surpassed New South Wales in terms of economic growth.
Each quarter CommSec gauges the performance of the states according to economic growth, retail spending, equipment investment, unemployment, construction work, population growth, housing finance and dwelling commencements.
For the first time since CommSec introduced the ‘State of the States’ economic performance rankings, Victoria took spot ahead of NSW, albeit there was said to be little between the two.
They were followed by ACT and Tasmania in the ‘second group’ and Queensland and South Australia in the ‘third group’. There was said to be a gap to the Northern Territory and Western Australia, places hard hit by the mining boom slump.
“Victoria has for the very first time taken out top spot, thanks to strong population growth, which is driving broad construction activity,” Commsec stated.
“NSW is in second spot on the economic performance rankings with slippage in a number of housing indicators.”
Treasurer of Victoria Tim Pallas said the figures confirmed the state was “the nation’s economic powerhouse”.
“We’re determined to build on this, to maintain our strong economic position and continue to invest in the major infrastructure that is critical for a growing state,” Mr Pallas said.
“Our unprecedented investment in roads and transport, hospitals and schools is paying dividends – driving the state’s economy.”
Commsec State of the States reports date back to 2009.