Queensland’s Economic Surge: Unpacking Australia’s Fastest-Growing State Economies in 2024-25
Australia’s economic landscape is constantly evolving, with some states consistently outperforming others. Recent data reveals a compelling story of growth, with the Australian Capital Territory (ACT) and Queensland claiming the top spots for the fastest-growing economies in 2024-25. These stellar performances, highlighted by the Australian Bureau of Statistics, offer a fascinating glimpse into the drivers of prosperity across the nation.
The Economic Race: ACT and Queensland Lead the Pack
When we talk about the size and health of regional economies, Gross State Product (GSP) is the equivalent of Gross Domestic Product (GDP) but for states and territories. Nationally, Australia’s total GDP saw a modest 1.4% growth in the year to June 2025. This was largely propelled by a robust services sector, even as mining and manufacturing faced headwinds.
However, the real showstoppers were the ACT and Queensland. The ACT experienced a remarkable 3.5% expansion, making it the fastest-growing economy. Hot on its heels, Queensland’s economy grew by an impressive 2.2%. These two regions were the only ones to surpass the national average growth rate, with most other states hovering around 1%.
What makes their growth even more significant is that the ACT, Queensland, and Tasmania were the only territories where real GSP (excluding inflation) outpaced population growth. This indicates a genuine increase in wealth per person, a crucial metric for sustainable prosperity.
Why Queensland is Thriving: A Deeper Dive
While the ACT’s success is largely attributed to its services-based economy and increased public sector activity (public administration and safety rose by 7.2%), Queensland’s economic growth tells a slightly different tale. Despite national challenges in mining due to severe weather and disruptions, Queensland found strength in other key sectors. Agriculture, in particular, made a substantial contribution, benefiting from favorable rural conditions.
In contrast, economic giants like New South Wales and Victoria, which together account for 31% and 23% of the national economy respectively, saw more modest GSP growth of 0.9% and 1.1%. Their diverse industrial compositions led to varying impacts, with construction activity dampening growth in NSW despite a strong agricultural harvest.
GSP Per Person: Unpacking Regional Disparities
Understanding real GSP per person offers another layer of insight into state economies. Western Australia, for instance, consistently produces more per person, largely due to its expansive mining industry. While mining generates significant revenue, it’s worth noting that it employs relatively fewer people compared to other sectors.
The impact of commodity price swings also creates more volatility in average incomes for states like Western Australia and the Northern Territory. Interestingly, the prosperity from high mineral prices in WA is partly redistributed to other states through the Commonwealth Grants Commission, a mechanism that has also supported WA during leaner times.
Looking Ahead: The Sunshine State’s Continued Momentum
Queensland’s strong economic performance in 2024-25 underscores its resilience and diversified economic base. From robust agricultural contributions to its growing service sector, the Sunshine State is positioning itself as a leader in Australia’s economic landscape.
For more detailed data and insights into Australia’s economic performance, you can visit the Australian Bureau of Statistics website.
