South Australia recognised as 'economic leader'

South Australia leads in economic performance across all Australian states and territories, according to the CommSec State of the States quarterly report.

CommSec said South Australia was "the most consistent performer," securing the top spot in half of the key economic indicators including economic growth, unemployment, construction work, and dwelling starts. The other indicators were retail spending, equipment investment, population growth, and housing finance.

South Australia led in real economic growth, recording an economic activity that was 9.1% above its long-term average level of output in the December quarter of 2023. New South Wales (NSW) came second with an output 8.6% above its long-term average, while Victoria took third place with 8.5%.

South Australia had the lowest unemployment rate (3.8%) which is 35.8% below its decade average. Western Australia came second with a jobless rate of 3.6%, which is 32.2% below its decade average.

When it comes to the total real value of residential, commercial, and engineering work completed, South Australia also emerged as the strongest for construction work done, recording a rate that is 22.2% above its decade average, pipping NSW, which posted 15.9% above the decade average.

South Australia also led in dwelling commencements, with starts 8.6% below the decade average.

Overall, Western Australia secured second place, leapfrogging Victoria, while Queensland, NSW, and Tasmania shared fourth place in the performance rankings. Northern Territory was dead last.

"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," CommSec chief economist Craig James said.

In contrast, Western Australia has had the strongest economic momentum over the past two surveys, giving it the "necessary momentum to pass South Australia" to attain top spot in coming quarters.

South Australian treasurer Stephen Mulligan said the government has worked hard to strengthen the economy and that the report was proof of getting results.

"South Australia's job market has been ranked the strongest in the nation, and significant investments in infrastructure will create a pipeline of work," Mulligan said.

"Housing remains a key focus - with the abolition of stamp duty for first home buyers and the creation of a new super portfolio to boost supply and get more South Australians into their own homes.

"We know that the national economy is softening, and while today's result is encouraging, we're determined to build momentum to keep delivering for South Australians."