A new report has found the ACT’s economy is lagging behind the rest of the country.

Commsec’s latest State of the State’s report has found a slowdown in the local housing industry is to blame, with the territory’s fortunes potentially hanging in the balance of the upcoming election.

The report found the ACT had the lowest number of new dwelling starts in the country in the 2024 December quarter.

The ACT also ranked seventh out of the states and territories for construction work, housing finance, and population growth.

It’s also expected that potential rate cuts down the line will positively impact the local economy, but households are reigning in their spending.