Western Australia has once again claimed the top spot in Australia’s economic rankings, leading the nation for the second consecutive quarter.

The January 2025 CommSec State of the States report, which assesses the performance of state economies, highlights WA’s resilience.

WA ranked highest in retail spending, unemployment rates, population growth, housing finance, and dwelling starts.

However, its economic growth lags behind, placing second last—just ahead of the Northern Territory.

Queensland and South Australia shared second place, followed by Victoria, Tasmania, New South Wales, and the Northern Territory.

South Australia recorded the strongest economic growth, with activity rising 8.4% above the long-term average.

Victoria led in construction work, with activity 16% above the decade average. Meanwhile, WA—where homes were selling rapidly in late 2024—had the highest levels of housing finance commitments and new dwelling starts.