Key economic growth measure state final demand increased by 0.9 per cent in the June quarter, trend terms Australian Bureau of Statistics figures showed.

That was the second fastest growth in the nation, behind only Victoria.

“What’s really important is that, in terms of private investment, that’s what drove it,” Treasurer Peter Gutwein said.

.He said private investment increased by 12.5 per cent in the last year, ahead of every other state and territory.

The June quarter state final demand figures took the state to 3.6 per cent annual growth.

That was double the 1.8 per cent recorded for 2016-17 and running  ahead of state Treasury’s budget estimates for 2017-18 (3 per cent) and for the current financial year (3.25 per cent).

The June quarter was the sixth in a row with private sector investment of more than $1 billion, coming in at  a record $1.167 billion.

That was an increase of $33 million compared to the previous quarter.

Household consumption spending also hit an all-time record in the quarter, increasing by $21 million to $4.79 billion.

Government consumption spending increased by $31 million to $1.81 billion, while public sector investment fell back slightly to $462 million.

Shadow Treasurer Scott Bacon welcomed the figures, saying they  were in line with expectations.

“Tasmania’s export-orientated economy should be performing well with the low Australian dollar increasing competitiveness and the global and national economies performing well,” Mr Bacon said. 

”This is a good time to be working in business in Tasmania with all the external economic conditions in our favour.” 

He said he was concerned the government was not making use of the positive economic conditions.

“The government has no economic reform agenda and it continues to under fund our health system,” Mr Bacon said.

“The Hodgman Government has been minding the shop for four and a half years,  rather than addressing the structural disadvantages that continue to impact Tasmanians.”

Mr Bacon said Tasmanian workers had the lowest wages in the nation, averaging  $10,000 per year less than the rest of the country.

Mr Gutwein said the state final demand results were “in sharp contrast to the last four years of the Labor-Green government, where state final demand went into reverse, contracting 1.4 per cent over the period”.