New figures reveal that Tasmania's economy has fallen further behind the rest of Australia, with the state sliding back on four of the eight indicators used in Commsec's State of the State report, released on Sunday.
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Tasmania's economic growth in the year to December was 4.5 per cent above its long-term average, ranking it equal sixth with Queensland in the quarterly survey.
It was a fall from the previous report in January, when Tasmania ranked fifth, with annual growth of 5.9 per cent above its long-term average.
CommSec ranked Tasmania's overall performance equal fourth with three other states.
The figures conform to the island state's downward economic trend relative to other states since at least the middle of 2023.
The state government had boasted of Tasmania's success in the influential report series up until July last year, claiming that its policies had resulted in the state leading in 12 of the last 14 CommSec reports.
But tellingly, the government has not released a similar statement about the report series since that time.
The latest report found that population growth - a key economic driver - has stalled, with an increase in the December quarter of just 0.27 per cent - the lowest in eight years and dead last of any Australian jurisdiction.
It was down from growth of 0.3 per cent in the previous report, and is 75 per cent below the state's long-run population growth rate.
There were some positives - Tasmanian equipment investment in the December quarter was 28 per cent above its long-run average, ranking it second of any state behind Victoria.
Tasmania had led on the indicator up until the previous report.
Tasmania also ranked third on unemployment, third in construction work, and second on housing starts.
In what seems to be an ominous sign for the property market, Tasmania was among the weakest performers on finance - home loan commitments were just 0.7 per cent above the state's long-term average, ranking it last of any jurisdiction bar the Northern Territory.
CommSec attributed slow growth around the country to the effect of higher interest rates and inflation.
"Economies have slowed as consumers respond to higher borrowing costs and price pressures," the report stated.
"The future path will depend on the resiliency of the job market and interest rates."