Why Australia's smallest states have thrived the most during the pandemic - and the surprising state coming last Tasmania has been Australia's strongest state economically during pandemic It was No.1 again on CommSec's State of the States league report, January 2022 South Australia came second with unemployment rate also at record-low levels But New South Wales is coming last among the states with retail spending weak By Stephen Johnson, Economics Reporter For Daily Mail Australia Published: 06:55 GMT, 24 January 2022 | Updated: 07:03 GMT, 24 January 2022 Viewcomments Australia's smaller states have thrived during the pandemic with Tasmania regarded as having the nation's strongest economy now for almost two years. The island state has topped CommSec's State of the States league table since mid-2020, and now has Australia's strongest retail spending despite the Omicron surge. Tasmania was also No. 1 for equipment investment and new home building in the January report. Australia's smaller states have thrived during the pandemic with Tasmania regarded as having the nation's strongest economy now for almost two years. The island state has topped CommSec's State of the States January 2022 league table since mid-2020, and now has Australia's strongest retail spending despite the Omicron surge (pictured is Hobart) Unemployment across Australia NATIONALLY: 4.2 per cent NSW: 4 per cent VICTORIA: 4.2 per cent QUEENSLAND: 4.7 per cent WESTERN AUSTRALIA: 3.4 per cent SOUTH AUSTRALIA: 3.9 per cent TASMANIA: 3.9 per cent NORTHERN TERRITORY: 4.2 per cent ACT: 4.5 per cent Source: Australian Bureau of Statistics labour force data for December Advertisement CommSec economists Craig James and Ryan Felsman have deemed it to be Australia's strongest economy during the Covid pandemic, as it was during the Global Financial Crisis in 2009. 'Tasmania is ranked first on relative unemployment, retail spending, equipment investment and dwelling starts,' they said. 'Tasmania also ranks second on construction work done and relative economic growth.' Another smaller state came second with South Australia, like Tasmania, having record-low unemployment of 3.9 per cent. At the other end of the spectrum, New South Wales is ranked sixth out of Australia's eight states and territories. NSW lags behind Tasmania, South Australia, Victoria, Western Australia and Queensland - making it last among the states. As recently as April 2019, Australia's most populated state had consistently topped the CommSec comparison. But the Covid surge is hurting retail spending, which has plunged by 11.9 per cent during the past year. Nonetheless, NSW is ranked first on housing finance, with house price surging from from Sydney to regional areas up and down the coast. Another smaller state came second with South Australia, like Tasmania, having record-low unemployment of 3.9 per cent. At the other end of the spectrum, New South Wales is ranked sixth out of Australia's eight states and territories Victoria, despite Melbourne being home to the world's longest lockdowns, ranked third on CommSec's league table, by virtue of the strongest annual retail spending growth of 8.7 per cent. Western Australia, despite being cut off indefinitely from the rest of the country, came fourth despite having the nation's lowest unemployment rate of 3.4 per cent. It ranked first on relative economic growth with iron ore prices recovering after sinking to a two-year low of $US80 a tonne in November. Queensland came fifth, but was the leader on population growth with strong interstate migration from NSW and Victoria. The Northern Territory came last with home building activity weak. The Australia Capital Territory, despite being home to high-income Canberra, came seventh or second last with its unemployment rate of 4.5 per cent above the national average of 4.2 per cent. As recently as April 2019, Australia's most populated state had consistently topped the CommSec comparison. But the Covid surge is hurting retail spending, which has plunged by 11.9 per cent during the past year (pictured is Sydney's Pitt Street Mall in the city) Share or comment on this article: All rights reserved for this news site (dailymail) and under his responsibility