WA economy lags behind all other states

Western Australia's economic performance was the worst of all Australian states for the March quarter, according to Commsec’s latest data, but stronger population and exports growth could indicate a turnaround is on the cards.

The state maintained its overall seventh position in Commsec’s State of the States report, lagging behind every other state and territory bar the Northern Territory on key economic indicators.   

WA recorded just 4.6 per cent growth in retail trade for the March quarter over decade-average levels.

In comparison, the top performing state, Victoria, had growth of 16.6 per cent.

WA also ranked second last in terms of spending on new plant and equipment and construction work, with falls in the March quarter of 15.4 per cent and 48.4 per cent below its decade average, respectively.

Tasmania’s plant and equipment growth was up 35.2 per cent and Victoria’s construction growth rose 30.1 per cent, as the two states topped the list in those areas.

But WA recorded the fastest annual nominal economic growth, up 10.6 per cent over the year to March, which CommSec said was supported by stronger exports and weaker imports.

The state’s annual population growth of 0.93 per cent was its fastest rate in almost four years.

CommSec said this was encouraging for WA, as resource projects gradually transitioned from the production to the export phase.