VIC overtakes NSW, but Sydney remains #1 economy - Ironfish

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VIC overtakes NSW, but Sydney remains #1 economy

 

Victoria has taken the top spot from NSW as the nation’s strongest state economy, however, Sydney remains the nation’s top performing city economy.

State of the State Rankings

Victoria now leads all states for economic performance according to the release of the latest CommSec ‘State of the States’ report.

It’s the first time in the report’s 9-year history that Victoria has taken the top spot; a result largely driven by construction work undertaken to accommodate the state’s booming population.

Victoria’s population grew by close to 400 people per day throughout 2017, translating to a rate of growth of 2.3% – the highest of all the states in 2017.

At current rates, Melbourne is expected to be the most populous Australian city as early as 2031.

Victoria’s population growth: 2010-2018

 

The CommSec report takes into account major indicators including: economic growth rates, population numbers, retail spending, employment and construction work undertaken. It measures each state’s overall performance based on historical decade averages across these indicators, and ranks states and territories accordingly.

Capital city economies: Sydney & Melbourne

While Victoria has pushed New South Wales down to second place in the State of the States report ranking, the capital city of Sydney remains in the number 1 spot.

According to a report by SGS Economics and Planning, Sydney is the top performing economy, growing by 3.3% during the 2017 financial year. In the same period, Melbourne’s economy grew by 2.8%.

Gross Regional Product for Sydney was recorded at $417 billion and for Melbourne, $324 billion in FY 2017.

While there has always been a lot of healthy rivalry between the two cities, both capital cities continue to drive the national economy, accounting for over half of the entire nation’s economic growth in the 2017 financial year.

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Want to know more about Sydney and Melbourne’s economy and other fundamental property market drivers? Download our latest market report.