The ACT has topped the table in CommSec’s latest State of the States economic rankings report, while NSW dragged its heels, coming in last.
CommSec’s chief economist Craig James said the Territory’s strong housing market helped to drive economic growth.
“When you’ve got good growth happening in the housing market that tends to provide multiplier effects right the way through the economy,” he said. “That’s lifted overall economic growth and also provided business investment.”
Meanwhile, leading business lobby group the Australian Chamber of Commerce and Industry, has criticised the poor performing NSW state, claiming the state is dragging the rest of Australia down.
“It is very concerning to the business community that our largest economy continues to lag,” the chamber’s chief executive Peter Anderson told reporters in Canberra on Monday.
“It’s hard to see Australia grow its economy in the way we would want in 2010 – a year of economy recovery – if our largest economy is not in good shape.”