The ACT has been knocked off its perch as the nation's economic pace-setter, but it continues to perform well above average, new figures show.
The territory's gross state product - a measurement of economic activity - grew by 3 per cent in 2018-19, according to Australian Bureau of Statistics figures published on Friday.
The ACT recorded four per cent growth in 2017-18, the highest in the nation. Tasmania took that title this financial year, with economic output in the Apple Isle growing by 3.6 per cent in the past 12 months - its strongest result since 2002-2003.
Victoria's gross state product also increased by 3 per cent, while a 1.9 per cent increase was recorded in NSW. The Northern Territory was the only jurisdiction to go backwards, with economic activity falling 1.5 per cent.
Australia's gross domestic product grew by 1.9 per cent in 2018-19.
The new figures provide further evidence that while the ACT economy continues to be among the best performing in the country, the rapid rate of growth of recent years has tapered off.
Deputy Chief Minister Yvette Berry was buoyant about the latest results, which came on the back of figures showing that more than 7700 jobs were created in the ACT in the past financial year.
"The ACT has one of the fastest growing economies in Australia right now," she said.
"This result reinforces yesterday's jobs figures, showing that Canberra has become one of the best places in the country to get a good job."
The territory recorded growth in 18 of 19 sectors, with administrative and support services and health industries experiencing the biggest gains.