Tasmania has overtaken New South Wales to become the second-best performing economy in the nation, behind only Victoria, according to a new report.
The October 2019 CommSec State of the States report shows Tasmania is firing, producing its best result in 10 years and leading the nation in three of eight key economic indicators.
The quarterly report measures the economic performance of states and territories based on past results, and rates how well or badly they are faring compared to their "normal" performance.
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Tasmania is now top of the pack when it comes to relative population growth, dwelling commencements and equipment investment, and ranks second for housing finance.
Treasurer Peter Gutwein said the report "once again confirms that the Tasmanian economy is surging ahead".
"This report is further proof our long-term plan is working to improve the lives of all Tasmanians," he said.
But CommSec's findings have also sparked concerns that high population growth and rising house prices could see vulnerable people left behind and increasing pressure placed on infrastructure.
Colony 47 chief executive Danny Sutton noted that the report showed population growth in Tasmania was at a 27-year high.
"While ... the government should be congratulated on these important achievements, [the report] is a warning sign that the housing crisis will get worse if the government doesn't continue to focus on the housing market and consider how it can accelerate its affordable housing commitments to meet the needs of all Tasmanians," Mr Sutton said.
Civil Contractors Federation chief executive Rachael Matheson said that while it was "fantastic" Tasmania's population growth was tracking strongly, it also meant that infrastructure would be placed under increasing strain.
"It's important we leverage infrastructure investment to ensure there is a consistent pipeline of work that will keep stimulating the economy and supporting jobs growth," Ms Matheson said.
CommSec rated Tasmania fifth for relative economic growth and fourth for retail spending.
It estimated retail spending in the June quarter was 10.5 per cent stronger than the decade average.
Tasmania was a clear leader on equipment investment, which was 28.3 per cent stronger than its decade average.
Tasmanian home lending was up 12.9 per cent on its decade average, behind only the ACT.
"Housing finance is not just a leading indicator for real estate activity and housing construction, but it is also a useful indicator of activity in the financial sector," the report said.
Among other indicators, Tasmania was strongest for sales of new vehicles - ahead of every other jurisdiction - and house price growth.
It had the second strongest annual wages growth (2.4 per cent).
That was just ahead of annual Hobart inflation growth of 2.3 per cent in the year to the June quarter.