Photo: The mining boom slowdown is affecting population growth in WA. (AFP)

State of the States: NSW ranked as Australia's best performing economy

By finance reporter Rebecca Hyam

2 May 2016,  

The economic weakness linked to the end of the mining construction boom continues to weigh on Australia's resource-rich states, but both New South Wales and Victoria remain strong, according to CommSec's latest quarterly State of the States report.

The report analysed eight key indicators including economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements.

NSW remained the country's best performing economy during the latest quarter, but Victoria edged closer to the top spot.

Both states maintained a strong lead over the other states and territories.

CommSec State of the States rankings:

1.         New South Wales

2.         Victoria

3.         Australian Capital Territory

4.         Northern Territory

5.         Queensland

6.         Western Australia

7.         Tasmania, South Australia (equal)

NSW boasted the best scores on population growth, retail trade, dwelling starts and unemployment, but drifted to second place on the housing finance indicator.

CommSec economist Savanth Sebastian said Victoria had very strong housing finance, retail spending, population growth and unemployment figures and was becoming a real threat to its northern neighbour.

"It's very likely that Victoria will edge even closer to New South Wales," he said.

"Maybe in six to nine months' time, if the trend and the momentum continues, Victoria may surpass the New South Wales economy."

The ACT was ranked the third-best economy, while the Northern Territory held onto fourth place.

The report revealed there was now not a great deal of room between the Top End and the fifth-placed Queensland economy.