Queensland overtakes Western Australia in economic rankings

Queensland has overtaken Western Australia as the top-ranked state in Australia's economic rankings for the June quarter, according to CommBank’s State of the States report. While Western Australia remains strong in household consumption and dwelling investment, its aggregate performance has declined, sliding to third place.

Western Australia's economic growth has been heavily supported by migration, but per capita consumption fell by 0.1 per cent over the year. The state has also faced significant cost pressures, with Perth recording the highest annualised inflation for both headline CPI and housing among Australian capital cities. Additionally, Perth has seen the nation's largest increase in dwelling prices.

In contrast, Queensland's economic expansion is currently being driven by business and dwelling investment. However, the state faces challenges in public finances, receiving its first credit rating cut from S&P Global in 17 years due to rising debt and deficits.

Other notable shifts in the rankings include South Australia rising to second place and New South Wales dropping to fourth. Victoria remains in sixth place, characterized by high unemployment and weak household consumption.