Northern Territory is fastest growing Australian state, NSW in danger of losing top spot

The end of the mining boom in Australia does not only cause an increase in delayed mortgage payments. It may also cause New South Wales (NSW) to lose its status as the best performing state in the country.

For now, NSW is still holding to that top position, but it is in danger of losing the status, according to the State of the States report compiled by CommSec. However, while NSW is the top Australian state when it comes to economic performance for the ninth consecutive month, it is Northern Territory (NT) which is the fastest growing Australian state.

CommSec listed construction work as the strength of NT and retail trade as its weakness. While it is fourth place for economic growth, construction work done and unemployment, its economic momentum appears to be losing as it ranked last in four indicators, namely population growth, business investment, housing finance and retail trade.

Nevertheless, NT’s nominal activity for its large-scale engineering and construction projects was 24.1 percent above the 10-year average. Gas projects also boosted NT’s construction work 30.6 percent higher than decade average, although it is lower by one-third compared to the last 12 month, indicating an economic slowdown in the territory.

Savanth Sebastian, CommSec economist, warns that with the gas projects about to be completed, unless new ones are kick in, NT would have lower ranking for economic activities in the next 12 to 18 months.

NSW, which CommSec listed as strong in retail trade, kept its hold on the top post because of top ranking in business investment, retail trade and dwelling starts, but the state has slipped to second place on unemployment, construction work, population growth and housing finance.

“Our economy is the strongest in the nation, our budget is firmly in the black and NSW is truly the number one place to live and work,” NSW Treasurer Gladys Berejiklian says on Monday, News.com.au reports.

ABC reports that for the June quarter, housing starts in NSW was 76 percent above its decade average and starts were 13.3 percent better compared to 12 months ago for the same quarter

In second place was Victoria, followed by the Australian Capital Territory, NT, South Australia, Queensland, Tasmania and Western Australia.