WA also recorded the fastest nominal economic growth, up 10.6 per cent over the year to March, supported by stronger exports and weaker imports. WA Treasurer Ben Wyatt said the report was penalising WA as it was comparing the economy now to the peak of the mining boom. While still at the end of the pack, WA had the fastest economic growth around the nation. "But as it moves further into history, better data for Western Australia [is available] and I'm particularly pleased to see Western Australia having the highest economic growth rates of all the states," he said. "That's why you are starting to see job creation in Western Australia after the 2016/17 economic recession, and now, two years later, having the strongest economic growth in the nation."

A healthy job market and a growing population have helped Victoria take possession of top spot as Australia's best performing economy. NSW dropped from equal first, while Tasmania, bolstered by housing construction and purchases, nudged ACT out of a share of third. CommSec Chief Economist Craig James said there were positive signs for the national economy following a very busy quarter. "In May, we saw the Morrison Government returned to office along with it the legislation of its tax cuts, while in June, we saw the Reserve Bank for the first time in three years cut the cash rate. And then it cut rates again in July," he said. "While we expect this stimulus to boost spending in the coming months, all eyes will be on the job market as the RBA looks to drive unemployment lower, leading to stronger wages growth.”

1. VICTORIA Victoria tied with NSW last quarter but has cemented its position at the top of the leaderboard after coming in first for economic growth, the job market, retail spending, and construction work done. CommSec chief economist Craig James says it is Victoria's economy that is strengthening rather than NSW's weakening, with little separating the top two. 2. NSW First or second on six out of eight indicators. Home dwelling starts were strongest in NSW due to above-normal population growth, while the state came in second for economic growth, construction work, retail spending and unemployment rates. It was, however, weakest in terms of housing finance, with the lowest number of committed home loans. 3. TASMANIA

Tasmania continues to markedly improve its economic performance, despite recording its highest unemployment rate since November 2014. With Tassie maintaining its hold on third spot with strong population growth creating demand for home purchases and new construction work, Mr James told AAP "it's possible that any one of the three economies could take the top spot" in the next survey. 4. ACT The ACT was bumped from equal third with Tasmania but sill ranks second on housing finance and business investment, and is third for retail trade and unemployment. 5. QUEENSLAND Queensland is edging up the leaderboard thanks to strong growth in population as people move to the state from within the country and abroad, according to Mr James. The state holds fifth position on the economic performance rankings but is third for relative economic growth.

6. SOUTH AUSTRALIA Not much separates South Australia from Queensland, and SA has held sixth position for the past 18 months. It had the fourth-strongest job and housing finance markets. 7. WESTERN AUSTRALIA Western Australia has come in seventh for six out of the eight key indicators, and is just head of the Northern Territory. The state has experienced its strongest annual population growth in nearly four years. 8. NORTHERN TERRITORY