Australia’s economic slowdown is evident throughout the 2018-19 financial year’s gross state product statistics. Yet amidst Australia’s stagnant economy, three regions stand out in their ability to weather the storm. According to the report, Tasmania, the Australian Capital Territory, and Victoria are the states/territories with the most encouraging economic growth.
Tasmania’s economy grew by 3.6%, the highest economic performer in the country. Victoria and the ACT were both slightly behind, showing 3% growth. These numbers are head and shoulders above the rest of the country – particularly the Northern Territory, whose staggering -1.5% gross state product growth rate is the lowest in the country.
As a whole, the overall GDP growth of Australia stands at a mere 1.9%.
Tasmania’s lower population is not necessarily the primary reason for their higher GDP numbers. In fact, the GDP per capita of TAS remains the highest nationwide, with a growth figure of 2.3% – well above the ACT, which came second with 1.2%.
As the state with the largest economy, New South Wales contributed 32.1% to Australia’s total 2018-19 GDP growth, lower than Victoria’s substantially smaller economy, which contributed 37.3%.
Although Tasmania’s economy accounts for only 1.6% of the country’s GDP, its contribution to GDP growth stands at an impressive 3.2%, which is nearly twice the anticipated number.
On the global GDP per capita rankings, Australia still holds its place among the top 10 – but there is no denying that Australia’s economy has found itself in a slump recently. Since 2012, the country’s GDP per capita grew by only 6%, while by comparison that of New Zealand grew by 8.5%.