Ranking Australia's states and territories by economy

Ranking Australia's states and territories by economy

A recent report has found that out of Australia’s states and territories, South Australia has experienced the strongest improvement in economic performance over the last quarter, though New South Wales remains at the front of the pack. 

According to the CommSec State of the States Report, South Australia moved from Australia’s 6th best performing economy to the 4th best, due in part to improvement in the job market serving to boost retail spending and new home starts.

South Australia’s shift in the rankings bumped Tasmania from the fourth position to the fifth, with Tassie softening in the relative position on retail spending and overall construction work done.

CommSec chief economist, Craig James, described Australia’s domestic economies as being in “great shape”, with some differences in relative performance.

“Those economies benefitting from favourable population growth are performing best, reflected in stronger home building and retail activity.”

The CommSec State of the States Report assesses each of the state and territory economies on eight key indicators:

  • economic growth
  • retail spending
  • business investment
  • unemployment
  • construction work done
  • population growth
  • housing finance
  • dwelling commencements

By comparing the economy of each Australian state and territory against decade-averages, as well as annual economic growth, the report ranked these economies as follows:

  1. New South Wales – Top-ranked in retail trade, dwelling starts, unemployment and equipment investment.
  2. Victoria – Leader in population growth and construction work done, and above-average in all other indicators.
  3. Australian Capital Territory – Top-ranked in housing finances, and third place in retail trade and economic growth.
  4. South Australia – Third place in dwelling starts, business investment and unemployment.
  5. Tasmania – Second in unemployment and third in population growth.
  6. Queensland – Strong export and employment growth, but under-performing on four of the economic indicators.
  7. Northern Territory – Ranked first in economic growth, but struggling with other indicators such as population growth.
  8. Western Australia – Below-average performance on seven out of eight economic indicators, due in part to the end of the mining construction boom.

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While personal loans and medium amount loans don’t offer guaranteed approval, there are steps you can take to help increase the likelihood of your application being approved, including:

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It’s not usually possible to set up a direct debit from your savings account to cover ongoing expenses or bills, as savings accounts are structured around growing your wealth by earning interest on regular deposits, and discouraging withdrawals.

Some transaction accounts allow you to set up direct debits and also earn interest, though you may not enjoy as much flexibility as a dedicated transaction account, or get as high an interest rate as a dedicated savings account.

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Opening a savings account is a relatively simple process. If you’ve found an account with a suitable interest rate, you’ll just need to get in contact with your chosen lender via a branch, phone call or hop online to begin the process. 

You may be required to provide:

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Some banks and financial institutions allow parents to open a bank account for their child as soon as it is born, and start depositing funds to go towards the child’s future.

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As banks frequently change their rates, the most accurate way to know who currently has the highest interest rate is to use a savings account comparison tool.

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The type of interest savings accounts accrues is called compound interest. Compound interest is interest paid on the initial deposit amount, as well as the accumulated interest on money you have. This is different from simple interest where interest is paid at the end of a specified term. Compound interest allows you to earn interest on interest at a higher frequency. 

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A lot of savings accounts won’t let you overdraw. Some will allow this feature but you’ll need to apply first. It’s best to read the fine print and check with your lender whether this is a feature they offer. It can be a helpful addition, but as your lender can charge you a fee as well as interest for going into negative numbers, it’s best to avoid overdrafting when possible.

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How to make money with a savings account?

Savings accounts make you money by earning interest on your savings. The more money you deposit, the longer you leave it in the account, and the higher the account’s interest rate, the more interest you’ll be paid by the bank or financial institution, and the more your wealth will grow.

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A good rule of thumb when working out a minimum balance for your savings account is to make sure that you’ll earn more in annual interest on your savings than what you’ll be charged in annual fees.

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