As the Australian economy continues to stay strong despite the COVID-19 pandemic, Tasmania has been in the spotlight for eight consecutive quarters, Commonwealth Securities reported.
According to the quarterly State of States report composed by Commonwealth Securities (CommSec), Tasmania has managed to achieve the top position again and has a high chance of keeping it in the short-term. However, the largest online stockbroking firm issued a warning that many things can change in 2022.
CommSec noted that while Tasmania was the frontrunner, other states and territories did not fall behind considerably. South Australia came in second, while Victoria ranked third, Western Australia fourth, Queensland fifth, New South Wales sixth, the Australian Capital Territory seventh, and the final position belonged to Northern Territory.
Craig James, the CommSec chief economist, said: “The Western Australian and South Australian economies have moved up the rankings, performing strongly during the pandemic.”
WA economy has received a boost from a hike in iron exports and prices. On the other hand, strong government and business investments have continued to benefit SA economic landscape.
CommSec conducts quarterly assessments on the economies of Australia’s states and territories using eight key indicators: economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements.
Tasmania ranked first on four indicators—equipment investment, unemployment, retail spending, and dwelling starts. Meanwhile, it achieved second place in economic growth and construction work done.
“Lockdowns have weighed on the economic performances of NSW and the ACT in the last survey,” James said. “While both of these economies could scale the rankings again, new challenges are presented by COVID-19 restrictions and the resulting labour shortages - not just for NSW and the ACT but for all economies.”
The CommSec chief economist has an expectation that the Queensland economy is likely to receive further contributions from the opening of domestic and international borders.
James said that the economies of all Australia’s states and territories remain strong with support from a solid fiscal and monetary stimulus and historically low unemployment rates recorded in much of the country.
“Labour is in short supply across many industries, a reflection of current COVID-related self-isolation requirements and border restrictions,” he said. “Ahead, the country will continue to face challenges managing the latest Omicron wave with infrastructure spending continuing to be a key driver of growth in 2022.”
