Tasmania’s economic growth has out paced the rest of the country, says Bank of us.
Bank of us chief executive and Tasmanian Chamber of Commerce and Industry board member Paul Ranson said Tasmania’s economy overall remained strong.
“We have recorded our fastest growth in a decade during the 2017-18 financial year and for the first time in nine years grew at a faster rate than the national average,” he said.
“In real per capita terms, Tasmania’s economy grew faster than that of any other state or territory in 2017-18, the first time that has occurred since the current annual series of state economic growth estimates commenced in 1989-90.”
Mr Ranson said the biggest industry contributors to growth during the past year were health care and social assistance; mining; manufacturing; construction; and professional, scientific and technical services.
“The findings from the previous three Tasmania reports have highlighted our strengths and our weakness, and the long-term challenges in improving our health, education and employment,” he said.
“We are building strong community connections to give Tasmanians the opportunity to be the best they can be.”
Mr Ranson welcomed the continued buoyancy of Tasmania’s residential property market.
“Tasmania’s property market is currently reflecting stronger ‘underlying’ demand driven by faster population growth and greater confidence on the part of local buyers,” Mr Ranson said.
However, he said the strength of the market had seen an ongoing escalation in rents, particularly in Hobart.
“For low-income households, Hobart is now the least affordable capital city in Australia,” Mr Ranson said.
“Conversion of part of the rental housing stock to short-stay tourism accommodation appears to have exacerbated this problem.”
Bank of us is a partner in the TCCI’s Tasmania Report, being released on Monday by its author and eminent economist Saul Eslake.