NSW has become Australia's half-trillion dollar economy, for the first time producing more than $500 billion in a calendar year.
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Although hailed by Treasurer Gladys Berejiklian as "exciting" and showing the NSW economy is "leading the nation", the figures show NSW less important to the rest of Australia than ever before.
Twenty years ago NSW accounted for more than a third of the Australian economy - 36 per cent. It now accounts for less than a third, 31.3 per cent, an all-time low.
Western Australia, which 20 years ago accounted for 12.6 per cent of the national economy, now accounts for 17.1 per cent. Queensland accounts for 18.5 per cent, up from 16 per cent. Victoria accounts for 21.9 per cent, down from 22.7 per cent.
Ms Berejiklian said NSW gross state product hit $513 billion in 2014-15, making it "a half a trillion dollar state economy".
"We have worked hard over the last four and a half years to take the NSW economy from last place to first," she said.
"But we won't stop here. We will keep working hard to ensure that our policies and strong economic management help the economy grow even further."
The state accounts show Victoria growing faster than NSW for the first time since 2008.
Victoria's performance is all the more remarkable because a year ago it reported anemic economic growth of just 1 per cent.
The 2.5 per cent Victoria recorded in 2014-15 puts it ahead of NSW on 2.4 per cent and way ahead of Queensland on 0.5 per cent, Tasmania and South Australia on 1.6 per cent, and the Australian Capital Territory on 1.4 per cent.
Only Western Australia (3.5 per cent) and the Northern Territory (10.5 per cent) grew faster.
The biggest contributor to Victoria's economic growth was population growth. In the past year Victoria's population has swelled by 1.7 per cent, more than any other state's. NSW grew by a weaker 1.3 per cent.
Victoria's construction boom saw building work surge 9.8 per cent in the year to June.
The NSW construction industry grew 5.5 per cent, and the finance industry 4.5 per cent. The weakest-performing NSW industry was manufacturing, which contracted 5.7 per cent, far more than any other state's.
NSW living standards remain above those of Victoria, but below those of Queensland and the Australian Capital Territory. Gross household disposable income per capita was $49030 in 2014-15 compared to $41,940 in Victoria. Queensland recorded gross household disposable income of $43,670 and the Australian Capital Territory $80,000.
