Tasmania was the only Australian state to record negative economic growth in the latest quarterly report, prompting fresh political debate over the government’s economic direction.
The CommSec State of the States report, released today, shows Tasmania’s economy contracted by 0.2% over the past year – the weakest performance in the country and the only state to go backwards.
Shadow Treasurer Dean Winter seized on the findings, labelling them “economic devastation” and blaming Premier Jeremy Rockliff’s deals with the Greens and crossbenchers.
“Businesses say they cannot trust Jeremy Rockliff’s Liberal-Green government and how could you blame them?” Winter said.
The report shows Tasmania’s household spending fell 0.3% over the year, the weakest performance nationally.
Equipment investment dropped 3.0% and construction work declined 3.6%.
CommSec described private sector demand in Tasmania as “anaemic” and said the state is “awaiting a much-needed housing recovery and rebound in exports”.
Population growth also lagged the rest of the nation, with Tasmania recording just 0.20% annual growth compared to Western Australia’s 2.28%.
Winter linked the poor performance directly to recent government decisions, particularly agreements on salmon policy and the decision to ban greyhound racing to secure crossbench support.
“How could you invest in a state where a signed letter from the premier means nothing?” he said.
The report showed Tasmania leading the nation on unemployment, with its 4.0% jobless rate ranking first and sitting 25.2% below the decade average.
Employment grew 2.5% over the year, second only to South Australia’s 3.7%.
The state ranked sixth overall in quarterly performance rankings, not last, though it fell from fifth position in the previous report.
Western Australia dominated the rankings for the fifth consecutive quarter, benefiting from strong population growth and household spending.
Queensland climbed to second place while the Northern Territory jumped from eighth to fourth.
The report said all states are facing challenging conditions, with the shift from public to private sector-led growth creating headwinds across the nation.
The CommSec report tracks eight key economic indicators, comparing current performance against decade-long averages to assess how states are performing relative to their normal economic conditions.
Treasurer Eric Abetz acknowledged the report recognises “strong jobs growth” but made no comment on its other findings.
“Since 2014 the number of Tasmanians in work has grown by more than 51,000 people,” he said.
“Tasmania has the lowest unemployment rate in the country and our government is working to keep it low.”
“In doing so, we can give businesses confidence, backing Tasmanian jobs and keeping our economy growing.”
