The Northern Territory has jumped up to fourth place in terms of economic momentum. (Source: Getty)
Western Australia continues to be the biggest powerhouse in Australia’s state and territory rankings, but one region has massively climbed the ladder. In terms of its economic prowess, the Northern Territory previously languished at the bottom, according to analysis by the Commonwealth Bank. But the northern region has now jumped to fourth best in the country.
The list combines eight important performance indicators to find which region in the country are thriving and which ones are perhaps lagging. CBA said the Top End was the “standout improver” thanks to a surge in its population.
“Western Australia, Queensland and the Northern Territory are best positioned heading into 2026,” Chief CommSec Economist Ryan Felsman said.
“The key question now is whether the private sector can sustain the recovery as public investment tapers off.”
According to the Northern Territory’s 2025-26 Budget, the region’s population was anticipated to grow by just 1 per cent this financial year. However, data from the Australian Bureau of Statistics found the year-on-year increase to March 31 was materially higher at 1.3 per cent, which represents roughly an additional 3,500 people heading to Darwin and its surrounds.
If this trend continues, it could mark a major turning point for the Top End, which has experienced continued net migration to other states and territories since 2012, except during the pandemic.
Do you have a story? Email stew.perrie@yahooinc.com
Chief CommSec Economist Ryan Felsman revealed the Northern Territory is rocketed up from eighth to fourth on the State of the State’s rankings. (Source: CBA/Getty)
While economic momentum is building in the NT, CommSec’s report found its major economic weakness at the moment was construction work.
The NT News revealed in July the building and construction industry was facing skilled labour shortages, with many tradies “tied up in Defence work”. This was causing civilian jobs and development projects to face big delays.
Back in February, the Property Council said the NT was at the back of the pack on the federal government’s plan to build 1.2 million new homes by 2029. At that point, the Top End had delivered 78.6 per cent fewer homes than needed for its target of 571 per quarter.
CommSec’s eight indicators of economic performance are economic growth, household spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements.
Here is how the states and territories performed in the different categories:
Economic Growth: South Australia topped the list and was 8.7 per cent above its long-run average
Household Spending: WA came first and was 14.8 per cent above its long-term average
Equipment Investment: WA led the pack and was 32.9 per cent above the decade average
Unemployment: Tasmania had the strongest job market and was 25 per cent below its decade average
Construction Work: South Australia remained at the top and was 21.9 per cent above its decade norm
Population Growth: The Northern Territory came first on relative population growth
Housing Finance: WA led the pack and was 42.5 per cent above its long-run average
Dwelling Starts: WA came first and was 24.8 per cent above the decade average
The resource-driven states are expected to maintain their economic advantage into 2026, according to CommBank economists. (Source: Commonwealth Bank)
“Western Australia continues to perform strongly, underpinned by strong population inflows, resilient household spending and ongoing government support,” Felsman said.
“Queensland’s economy is rebounding following weather-related disruptions earlier in the year with exports stabilising, while the public investment outlook is promising in the Sunshine State due to planned Olympic infrastructure projects.
“Lower borrowing costs will eventually support the transition from public-to-private sector-led economic activity in Australia’s south-eastern states and territories.”
Here is how the states and territories were ranked:
Western Australia: Household spending was strong, but economic growth was weak
Queensland: Housing finance was strong, but equipment spending was weak
South Australia: Construction work was strong, but relative population growth was weak
Northern Territory: Relative population growth was strong, but construction work was weak
Victoria: Relative population growth was strong, but relative unemployment was weak
Tasmania: Relative unemployment was strong, but relative population growth was weak
New South Wales: Equipment spending was strong, but housing finance was weak
ACT: Economic growth was strong, but dwelling starts were weak
Get the latest Yahoo Finance news – follow us on Facebook, LinkedIn and Instagram.