Digging becomes building in economic re-adjustment
A new report says the Australian economy remains in a shifting state, adjusting itself from resource-heavy to a more varied base.
The latest quarterly State of the States report from CommSec shows the mining sector is not the behemoth it once was, and is beginning to balance out amongst other industries.
CommSec says the Western Australian economy is still the strongest, but it it slowing down too.
The Northern Territory has come in second this time, its coffer filled by a recent gas boom.
In New South Wales, however, housing and business investment are driving growth.
CommSec's chief economist Craig James says the local economy is travelling the path set out by the Reserve Bank.
“Were not seeing Western Australia and the Northern Territory and parts of Queensland with gas production going ahead in leaps and bounds and leaving everyone else behind,” he told the ABC.
“We are seeing a pick-up in terms of housing construction and that's much more broad based. We're seeing that growth in housing construction right across Australia”
The figures show Australia's economy is no longer reliant moving away from its recent reliance on resources and is about to see the benefits of a housing boom, fuelled by ultra low interest rates.
“It provides the opportunity for economies like New South Wales and Victoria to be able to pick up in terms of the overall standings,” Mr James said.
Tasmania’s economic stats have again placed it last on the list.