Tasmanian Treasurer Peter Gutwein hails new figures showing strong economic growth
UPDATED: PRIVATE capital investment grew at 12 per cent last financial year in Tasmania — almost four times the national average. That amounts to a $4b boom spent on new commercial and residential buildings, plant and equipment.
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UPDATED: TASMANIA’S private sector is leading the nation as business confidence, population growth and international exposure fuel an investment boom.
Private capital investment grew at 12 per cent last financial year — almost four times the national average. That amounts to a $4 billion boom over the past year spent on new commercial and residential buildings, plant and equipment.
Tasmanian Chamber of Commerce and Industry chief Michael Bailey said the challenge for Tasmania now was to make sure that it made the most of its time in the economic sunshine: “These sorts of numbers don’t come by chance.”
Mr Bailey said population growth and investment confidence were combining to fuel the growth.
“Tasmania is the flavour of not the nation but the world at the moment,” Mr Bailey said.
“There’s a lot of good stuff happening. Four or five years ago we were starting to see the green shoots of the economy starting to emerge and now we’re seeing the benefits of that. We know that right around Tasmanian investment is really strong.
“We’re seeing it right across the state, probably more across the North than in Hobart, which is still going strong.
“We’re seeing hotel projects open, we’re seeing a whole range of construction investment. We need to make sure we maximise the benefits we’re seeing across the state and doing the most we can to make sure it continues.”
Tasmanian Small Business Council chief executive Robert Mallett agreed that business conditions were good — and the new figures reflected that.
“It doesn’t surprise me. The Tasmanian economy is cruising along quite well in a whole range of sectors,” Mr Mallett said.
He said some of the strong growth was the result of some well-targeted industry assistance over recent years, federal government instant asset write-offs and generally improved business conditions and confidence.
“We were a bit of a basket case for a lot of years, people weren’t investing,” he said.
“But Tasmania for the last three of four Sensis small business indexes has been absolutely leading the nation.”
The Australian Bureau of Statistics released its national accounts figures for the June quarter yesterday, showing that Tasmania’s overall economy grew at 0.9 per cent in trend terms.
The local economy was bested only by Victoria’s. The national economy grew at 0.9 per cent for the quarter.
Treasurer Peter Gutwein said the state was showing strong growth in jobs, exports, retail trade and business confidence.
“Tasmania had the second fastest growing economy in the country,” he said of the figures.
“What’s really important is in terms of private investment — that’s what drove it.
“Private investment growth in Tasmania for the last 12 months for the last financial year was 12.5 per cent — outstripping every other state and territory in the nation.”
But Labor’s Treasury spokesman Scott Bacon said the Tasmanian economy as a whole was just tracking national trends and said the government was “minding the shop” rather than addressing big economic reform.
“Tasmania’s export-orientated economy should be performing well with the low Australian dollar, increasing competitiveness and the global and national economies performing well,” Mr Bacon said.
“This is a good time to be working in business in Tasmania with all the external economic conditions in our favour.
“It continues to concern me that these positive economic conditions are not being used by the government. The government has no economic reform agenda and it continues to underfund our health system.”
3.4% growth in GDP in 2017-18 is the fastest rate of growth since the height of the mining boom.
— Josh Frydenberg (@JoshFrydenberg) September 5, 2018
330,000 jobs created in 2017-18 is the largest jobs growth in a FY since 2004-05.
Australia’s economy is strong. The Coalition Govt is focused on keeping it strong.@ScottMorrisonMP pic.twitter.com/nWVLCRDRd2
EARLIER: TASMANIA’S economy has enjoyed another quarter of strong performance — recording the second-highest growth rate in the nation.
The result was underpinned by strong growth in private business investment.
The Australian Bureau of Statistics released its national accounts figures for the June quarter today, showing that Tasmania’s economy grew at 0.9 per cent in trend terms.
The local economy was bested only by Victoria’s. The national economy grew at 0.9 per cent for the quarter.
Treasurer Peter Gutwein said the result reflected continued strong growth in jobs, exports, retail trade and business confidence.
“Tasmania had the second fastest growing economy in the country,” he said of the figures.
“What’s really important is it in terms of private investment — that’s what drove it.
“Private investment growth in Tasmania for the last 12 months, for the last financial year, was 12.5 per cent — outstripping every other state and territory in the nation.
“It’s something that we can all be proud of.”
Labor’s treasury spokesman Scott Bacon said the Tasmanian economy was just tracking national trends and the Government was just “minding the shop” rather than addressing big economic reform.
“Tasmania’s export-orientated economy should be performing well with the low Australian dollar, increasing competitiveness and the global and national economies performing well,” Mr Bacon said.
“This is a good time to be working in business in Tasmania with all the external economic conditions in our favour.
“It continues to concern me that these positive economic conditions are not being utilised by the government.
“The Government has no economic reform agenda and it continues to underfund our health system.”
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