The ACT had the top performing economy of any state or territory in Australia at the end of 2016, an ANZ study has found.
The ANZ research team found that while the Australian economy was underperforming overall, the ACT and Victoria were the tallest dwarves.
Every state and territory economy was growing below its historical average with the exception of the ACT and Victoria.
The report concluded that while the ACT had the top performing economy at the end of 2016, its growth was weakening.
“The loss of momentum has been driven by some weakening in labour market conditions. However, the household sector seems to be picking up,” the report stated.
The study, called the “Stateometer”, is published quarterly. It measures the performance of each state’s economy based on a variety of indicators, such as the housing, jobs, inflation and growth. Successive Stateometers have ranked the ACT as a top performer.
Other big four banks publish similar analyses and have come to similar conclusions. Last month, the Commonwealth Bank’s quarterly report found that “effectively we have a two tier economy: NSW, VIC and the ACT are at the top tier of the economy, then there is little to separate the other economies across the nation.”
Late last year, Westpac-owned St. George released a report which painted the ACT economy in a positive light. The report cited the new international airport and rising house prices as driving the ACT’s growth.
The positive reading of the ACT economy supplied by the big banks comes as experts warn of pending collapse nationally. Steve Keen, an economics professor at Kingston University who became famous for correctly predicting the GFC, has warned that Australia will enter a recession this year due to household debts rising faster than salaries.
“Our debt level according to the Bank of International Settlements, private debt level, has gone from 150 per cent of GDP to 210 per cent of GDP,” Professor Keen said.
“Ireland did the same thing when they called themselves the Celtic Tiger and they don’t call themselves that anymore”
The next Stateometer is due out in April.