Australia: State annual accounts confirm Victoria leads the way – Westpac

Andrew Hanlan, Research Analyst at Westpac, notes that the Australian Bureau of Statistics has released the annual State Accounts which provide annual estimates of state output - quarterly figures are not available.

Key Quotes

“In 2016/17, real output grew by 2.0% nationally, moderating from 2.8%, after a weak start to the financial year in part due to weather disruptions and the July Federal election. The major non-mining states led growth, while declining mining investment impacted WA.”

“The major states of Victoria and NSW grew at an above trend pace, 2.9% and 3.3% respectively, with strength across a number of industries. That said, there was some loss of momentum, centred in real estate and retail.”

“Across the mining states, the economic performance was mixed. Western Australia experienced a sharp contraction in output, -2.7%, as the mining investment wind-down continued. Qld fared better, notching up modest growth of 1.8%.”

“In the southern states, the growth performance also varied. South Australia grew by an around trend 2.2%, boosted by a bumper year for agriculture. Tasmania expanded at a below trend pace for a fourth consecutive year, at 1.1%, with weakness in mining and construction.”

“Subsequently, moving through calendar 2017, the growth differential has narrowed. A public investment upswing is boosting conditions across the southern states, while the mining states have improved reflecting a diminished investment drag and a lift from higher commodity prices.”