Tasmania has been the surprise improver among the states and territories in terms of economic growth. Tasmania, where the economy went backwards in 2006, showed 7.7% economic growth in 2007 to rank second in the nation.

Western Australia is still the national leader, after economic growth of 9.7% last year. Queensland continued its strong performance with 7.2% growth.

All the states and territories improved their economic positions compared with the previous year, with the exception of the ACT which grew its economy just 2.2%, compared with 5.6% the year before.

Major improvement was shown by New South Wales, which lifted growth from 1.8% in 2006 to 4.5% in 2007, and the Northern Territory, which improved from a 1% decline to 5% growth last year.

Adelaide?s residential rental market has eased a little, but vacancies remain well under 2%. The Real Estate Institute of South Australia says the vacancy rate was 1.67% in January.

But the REISA says tenants are refusing to pay the high rents being asked by some landlords. It says most of the vacant properties are asking more than $350 per week, but properties with cheaper rents are often attracting 10 or more applications from tenants.

The inner-city precinct is the only one of the six main areas of the Adelaide market with a vacancy rate above 2%. The western suburbs are at 0.8%, the south is a fraction over 1% and the Adelaide Hills has a vacancy rate of 1.5%.