Tasmania and Victoria share the top spot for the best performing economies in the March quarter

Tasmania’s economy was performing stronger than it had for more than a decade before the coronavirus crisis. Will it bounce back?

TASMANIA’S economy has received its best economic ranking in over a decade, in a report labelled “bittersweet” by the business community.

The latest CommSec State of the States report released today, which is based on pre-coronavirus data, places Tasmania equal with Victoria as the nation’s top economy.

CommSec said factors in Tasmania’s improved economic performance included:

DWELLING starts topped the nation at 20.7 per cent above the decade average.

RETAIL spending was 13.1 per cent above the decade average.

UNEMPLOYMENT was at 5.3 per cent, 17.4 per cent below the decade average.

HOUSING finance was up 29.1 per cent on the long-term average.

CommSec chief economist Craig James said while the report used the most up-to-date economic data, it reflected conditions before the impact of the coronavirus had been felt by many Australian businesses and households.

“Regardless of the rankings, the impact of the coronavirus is posing significant challenges across all states and territories, especially those reliant on overseas tourism and overseas students. While each state and territory has its unique pressures, we really are all in this together,” Mr James said.

Premier Peter Gutwein. Picture: LUKE BOWDEN

Premier Peter Gutwein said the report showed Tasmania’s economy was in the strongest possible position to rebuild.

“The respected report shows prior to the impacts of the coronavirus, Tasmania recorded its best economic result in over a decade,” Mr Gutwein said.

“The huge task before us now is to rebuild our economy, and to restore the thousands of jobs that have been lost because of the virus.”

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey. Picture: RICHARD JUPE

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the report was bittersweet.

“This is a huge achievement for Tasmania and one that the business community can rightly be proud of,” Mr Bailey said.

“Obviously the report is retrospective. The coronavirus has changed everything and the economic shockwaves in Tasmania have had a massive impact.”

“But what this does show is that when the community, the business sector and the State Government all work together, there is no reason why we can’t lead the nation.”