THE ACT has ranked second place as the best-performing economy in Australia according to a Commsec report.

“State of the States report” ranks States and Territories on their current economic performance against decade-long averages. ACT has ranked second, equal to Victoria and behind WA.

“The CommSec report reaffirms that the ACT economy is travelling well,” Deputy Chief Minister and Treasurer Andrew Barr said.

“We have robust growth, underpinned by consistently and strong population growth, and low unemployment.”

According to the report, the ACT had the second highest population growth above the decade-long average with the Territory recording a population growth of 1.92 per cent in the September quarter in 2011, behind WA’s 2.63 per cent growth.

It also showed: the ACT’s economic output was up 18.2 per cent  in the December quarter in 2011, behind WA’s 32 per cent and Queensland’s 22 per cent; construction work was 47 per cent above the average, behind WA’s 82 per cent and Queensland’s 53 percent; the Territory had the highest over-performance on housing finance with housing finance commitments 6.2 per cent above the average; and the highest over-performance in dwelling starts, 55 per cent on the average.

However, Liberal Treasury spokesperson Brendan Smyth says that the report shows the ACT has the worst retail sector in the country and highlights the extent of Canberra’s cost living crisis.

“According to the report, the ACT is at the bottom of all the States and Territories in terms of retail spending,” Mr Smyth said.

“It is clear that ACT Labor’s ever-increasing cost of living pressures are having a severe impact on Canberrans’ bottom line.

“Under ACT Labor, rates have increased by 100 per cent in many  suburbs, water costs have tripled, and electricity has risen 75 per cent,
with another 17 per cent rise in July. This leaves many Canberrans with  little disposable income to spend on our important local retail sector.

“The report also shows the detrimental impact of ACT Labor’s $50,000+ per unit tax on the building industry, with dwelling approvals continuing to drop.

“ACT Labor is hindering a vital local industry by making it simply too expensive for developers to invest in the ACT.

“These are the aspects of the report which Andrew Barr doesn’t want to  discuss. He needs to understand the severe pressure that ACT Labor
policies are placing on these important local industries and take action  to reduce this pressure in the upcoming ACT Budget.”

Mr Barr said later this month, the ACT Government will release its “Business Development Strategy, which will “further boost growth and employment and help further diversify our economy and contribute to a thriving private sector”.