Surprise state declared Australia’s best performing economy

South Australia’s economy has once again been declared the best performing in the country as it topped four of eight key indicators in a new report comparing the states.

The numbers are contained in the CommSec State of the States economic performance report which saw South Australia emerge ahead of Western Australia and Victoria.

The numbers compare the state’s economic activity over the last quarter compared with a decade average.

South Australia leads the country in economic growth (up 9.1 per cent this quarter on the decade average), unemployment (down 35.8 per cent), construction work (up 22.2 per cent) and dwelling commencements.

While the state only recorded 2660 dwelling commencements in the last quarter - down 8.6 per cent on the decade average - it was the only state to not record a double digit percentage decrease.

Tasmania was the next best performing state on dwelling starts - down 17.6 per cent compared to the average over the last 10 years.

Western Australia, on the back of strong unemployment figures (down 32.2 per cent on the decade average), population growth (up 125.1 per cent) and equipment investment (up 34.5 per cent), jumped ahead of Victoria.

Queensland, NSW, the ACT and Tasmania shared fourth spot, according to the report.

“Overall, economies have slowed in response to higher interest rates, but have generally remained resilient, underpinned by firm population growth and low unemployment,” CommSec chief economist Craig James said.

“Justifying South Australia’s position on top of the rankings is the fact that it ranks first on four of the eight indicators. But there are signs the economy is losing momentum as shown by its sixth ranking on the annual rate of change across the indicators.

“Western Australia remains on top of the leaderboard of the annual growth rates of the eight key economic indicators. WA has the necessary momentum to pass South Australia to attain top spot in coming quarters.”

Western Australia ranked first on two of the key indicators - relative population growth and equipment investment.

Queensland ranked first on home loans and the the ACT was on top for retail spending.