Commsec’s State of the States report for July 2024 has revealed South Australia as the leading economy in the country for the third consecutive quarter.
Prior to January this year, South Australia had never achieved the top position in the report’s 15-year history.
The report ranks each state and territory based on eight different indicators compared to their long-term averages. South Australia’s high ranking reflects its current circumstances relative to its historical performance.
In the report, South Australia ranked first in three of the eight indicators: unemployment, construction work, and dwelling starts. This success highlights the resilience of South Australian businesses, which continue to hire and undertake projects despite challenging conditions and high operating costs.
South Australia’s economic growth in the year to March 2024 was 6.6% higher than its long-term average, second only to the ACT. However, South Australia ranked second last in equipment investment, a key indicator of productivity growth.
New equipment investment in South Australia was 8.8% lower than a year ago. Additionally, South Australia’s population growth was 1.65%, significantly lower than Western Australia’s 3.31% growth over the past year. Commsec noted South Australia’s economy “has lost momentum in recent months due to weaker consumer and business spending.”
The report also highlighted that Western Australia has the “strongest annual economic momentum” and is likely to take the top spot in the next report.
