Tasmania’s economy has slipped to sixth place in the latest CommSec quarterly State of the States report.
After being home to the country’s best-performing economy for 12 out of the past 15 reports, Tasmania has now recorded the slowest economic growth, down 0.7%, but still leads in equipment investment and dwelling starts.
Labor’s Shadow Treasurer Shane Broad said the report shows “the wheels are falling off the Tasmanian economy”, but Treasurer Michael Ferguson said the state’s overall trend continues to be upward.
Ferguson said Tasmania ’emerged from the pandemic stronger and faster than the rest of Australia and it is clear that other states are now catching up’.
He said there is ‘little to separate the top six states and territories in terms of economic performance’, with Tasmania leading on 2 of the 8 CommSec indicators and was in the top 3 for another 2.
Ferguson said the government remained committed to working closely with businesses as they ‘confront national inflationary pressures’.
Dr Broad, however, was adamant that the report was just “more bad news for the state’s economy”.
“The CommSec report shows Tasmania was the only state to record a negative annual growth rate, which at -0.7 per cent is well behind the national average of 3.3 per cent.”
“Tasmania also had the weakest job market of any state, with the slowest job growth. Tasmania recorded the weakest population growth, which at 0.42% was the worst result for Tasmania in around seven years.”
“This is devastating news for Tasmanian households and businesses, but it’s no coincidence that with a government in disarray, the economy is following suit.”
Ferguson said ABS data confirmed more than 54,900 jobs were created for Tasmanians since the Liberal government came to power in 2014.
“The unemployment rate has maintained historically low levels for months, with a current recorded unemployment rate of 4.4 per cent, half of that under the disastrous former Labor-Green government,” he said.
