Population growth was a major bright spot for Queensland as it recorded its highest annual figure in almost two years, according to the latest CommSec State of the States report.

But even that 1.35 per cent increase was 30 per cent down on the 10-year average, which the report used to analyse performance.

The state was also buoyed by continuously strong levels of housing construction, with dwelling starts 36.5 per cent above the decade average.

The increases helped the state's economy lift from sixth to seventh overall as New South Wales maintained a firm grip on the top spot.

But Tasmania's spike in home lending saw the island state jump from seventh to fourth, leaving Queensland the worst performing on the east coast, only ahead of the Northern Territory, South Australia and Western Australia.

"Queensland is being underpinned by a modest recovery in population growth, driving demand for homes," CommSec chief economist Craig James said.

He said the latest report represented a "two-tiered" national economy, led by states and territories in the country's south-east.

"New South Wales, Victoria and the Australian Capital Territory represent the top-tier, with little to separate the economies in the second tier," he said.

"New South Wales has now taken top spot on economic growth and maintained top spot on retail rankings. The state remains in top spot for dwelling starts with commencements more than 81 per cent above decade averages."

Queensland Treasurer Curtis Pitt again criticised the report's methodology, saying it didn't accurately measure current economic performance.

While I acknowledge these comments (strong home building, tourism and rural exports), I have advised CommSec the report's methodology is flawed given it compares current economic indicators against decades-long 'normal' averages," Mr Pitt said.

"This means the report focuses on the historic highs of LNG construction which started back in 2011, rather than offering an accurate insight into Queensland's economy in this moment."

Shadow treasurer Scott Emerson said it was a sad, sorry start to 2017.

"We're sixth out of eight on economic growth, business investment, unemployment and housing finance, while we're seventh out of eight on construction work done," Mr Emerson said.

"Worse still, we're also in second last on wages growth.