The latest CommSec State of the States report ranks Tasmania last for economic growth and dwelling starts, but said the state is seeing a “modest lift in momentum”.
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Tasmania is fifth rank on four key indicators, population growth, unemployment, construction work, and equipment investment, and for retail spending Tasmania ranks seventh.
CommSec chief economist Craig James said despite ranking last for two indicators, Tasmania had some encouraging signs.
When you go back over the past year Tasmania was eighth ranked fairly consistently and with a fairly large margin, but now it has closed up a bit
- CommSec chief economist Craig James
“When you go back over the past year Tasmania was eighth ranked fairly consistently and with a fairly large margin, but now it has closed up a bit,” he said.
“There is little to separate five of the eight states and their economies, so Tasmania may be eighth ranked but Western Australia is only slightly above and then you’ve got Queensland, South Australia and the Northern Territory.”
Mr James said Tasmania had some momentum supplied to the economy by good activity in the tourism industry.
“[But] I wouldn't say that Tasmania is actually lifting to catch the other states, but more the fact that we are seeing activity in other state deteriorate,” he said.
Treasurer Peter Gutwein said the report highlighted a boost in an array of sectors.
“Tasmania has not only improved on every count, but retail spending in particular has grown from strength to strength,” he said.
“There is momentum in the growth of Tasmania’s’ economy, but we recognise there is still a lot of work to be done. That’s why we are focussed on getting the budget on track so we can invest in the things that are important to Tasmanians, and continue to strengthen the economy.”
Shadow treasurer Scott Bacon said the report should be “uncomfortable reading for the Liberal government.”
“The CommSec report shows Tasmania is facing serious challenges when it comes to economic growth and employment,” he said.
“The unemployment rate of 6.5 per cent is distorted by a falling participation rate.”