A healthy jobs market and a growing population have helped Victoria take sole possession of top spot as Australia’s best-performing economy, according to CommSec’s latest State of the States report.

NSW dropped from equal first, while Tasmania nudged ACT out of third. Queensland has risen to fifth spot.

Victoria tied with NSW last quarter but has cemented its position at the top of the leader board 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.

Tasmania continues to markedly improve its economic performance. 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.