CommBank declares Western Australia as top-performing economy
Western Australia’s retail spending in the June quarter was 10.5 percent higher than the decade-average level.
According to Commonwealth Bank’s research, Western Australia emerged as the best performing economy across all states, reclaiming the top spot for the first time in a decade.
CommBank highlighted that Western Australia excelled in retail spending, relative unemployment, and population growth among the study’s eight indicators.
The study utilized the most recent economic data available, including population growth data from the March quarter, unemployment data from September, and housing finance figures from August.
“Western Australia’s strong economic fundamentals, such as low unemployment and robust population growth, have driven leading consumer spending in the nation, propelling the state to the top spot after a decade,” stated Ryan Felsman, Chief CommSec Economist.
Despite rising living costs and borrowing rates, Western Australia’s retail spending in the June quarter was 10.5 percent higher than the decade-average level.
Furthermore, the region’s unemployment rate was at 3.7 percent in September, which was 29.5 percent below the decade-average level.
Western Australia’s population growth reached 3.11 percent, significantly higher than the decade average for the year up to the March quarter of 2024.
Rita Saffioti, treasurer of Western Australia, emphasized the report’s recognition of the state’s strong job market and significant population growth.
South Australia Nudged From Second Spot
South Australia slipped to second place but led in real economic growth with activity 8.4 percent above its long-term average output level.
The state experienced the fastest economic growth of 3 percent over the year and led in dwelling starts, which were 3.9 percent below the decade average.
Stephen Mullighan, treasurer of South Australia, acknowledged the challenge of competing with Western Australia’s advantages but remained positive about maintaining the second spot.
Felsman highlighted Australia’s resilient job market and solid population growth but flagged high interest rates as a pressure point for consumers and a potential drag on economic progress.
“The future trajectory will rely on the strength of the labor market, monetary policy trends, and China’s economic recovery,” noted Felsman.
