Slamming on brakes: Report confirms Tasmania's downward economic trend

Tasmania has the weakest economic growth prospects in the country, with output projected to fall by half a percent in this financial year and to stagnate next year, according to the latest Deloitte Access Economics Business Outlook released this week.

The report is the second major release this week that signalled trouble on the horizon for the state's economy.

On Sunday, the CommSec State of the States report revealed that Tasmania's output was among the slowest in the country in the final quarter of 2023.

Deloitte Access Economics partner Stephen Smith said lack of robust population growth continued to be a problem for Tasmania.

"Growth is expected to rebound in Tasmania, but still trail other states and territories as low population growth limits private demand," he said.

The report read: "The state's population increased by just 0.03 per cent in the September 2023 quarter, decelerating growth on a year-ended basis to a rate of just 0.3 per cent.

"Turning around Tasmania's population growth would require stemming the outflow of movements to other states and territories, which increased to more than 3,000 people through the year to September 2023."

Labor Treasury spokesman Josh Willie said the report, combined with the recent CommSec State of the States report, suggested that Tasmania's economy was "flatlining".

"Tasmania is also the only state with forecast job losses over the next two years - with thousands more jobs set to be lost across 2023-24 and 2024-25," Mr Willie said.

"Tasmania needs a government that is focused on delivering the projects and jobs that will get Tasmania's economy back on track."

He said the state had already lost 5000 jobs since mid-last year, when the government became a minority government.

"The budget has been delayed while the economy flatlines and opportunities pass us by, as the Liberals put all their energies into dealing with their internal fighting, rather than focusing on Tasmanians."