“Solid shape”: economic report shows Tasmania leading the pack

Tasmania’s economy is leading the nation according to the latest CommSec report, but “much can change over 2022”, says leading economist. HOW WE RANKED >>

Tasmania has been hailed as the state with the best performing economy in the latest CommSec report, leading the nation when it comes to relative unemployment, retail spending, equipment investment and dwelling starts.

Tasmania had the strongest job market, with a record low unemployment level of 3.9 per cent or 39.7 per cent below the decade average.

Tasmania was ahead of Queensland in retail spending, recording an increase of 19.1 per cent of the decade average.

The state had an increase of 94.6 per cent on the decade average when it came to equipment investment and 61.3 per cent for dwelling starts.

The report found Tasmania was also came in behind Western Australia on economic growth, performing 25.6 per cent above its normal output.

In construction, Tasmania fell just short of leading the nation, at 21.6 above its decade average, beaten out by Victoria by 0.3 per cent.

But in housing finance, Tasmania performed the second weakest ahead of Western Australia, recording a 2.6 per cent annual fall in home loans.

CommSec chief economist Craig James said Tasmania had held the top position for the last eight quarterly surveys.

“While Tasmania continues to lead, there is currently little separating the other economies,” Mr James said.

“Australia’s state and territory economies are in solid shape, well supported by strong fiscal and monetary stimulus.

“Unemployment rates are historically-low across much of the nation.”

CommSec Chief Economist Craig James. PICTURE: JUSTIN BRIERTY

Mr James said “much can change over 2022.”

“Labour is in short supply across many industries – a reflection of current Covid-related self-isolation requirements and border restrictions,” Mr James said.

“In differing ways, each state or territory will attempt to ‘live with Covid’ throughout 2022, potentially leading to major changes in the performance rankings.

“Ahead, the country will continue to face challenges managing the latest omicron wave with infrastructure spending continuing to be a key driver of growth in 2022.”

Premier Peter Gutwein said he hoped Tasmania could maintain its momentum in the transition to living with Covid.

“There is no doubt our economy entered the pandemic in a position of strength, and we worked hard to maintain this throughout the pandemic,” Mr Gutwein said.

Premier Peter Gutwein. Picture: Nikki Davis-Jones

“Tasmanians have responded by doing the right thing, getting vaccinated and supporting local businesses, allowing us to reopen as one of the safest places in the world.”

TasCOSS CEO Adrienne Picone said all Tasmanians needed to feel the benefits of an improved economy.

“As we tread an uncharted path ahead in choosing in live with the virus, we must do everything in our power ensure those living on low incomes are feeling the benefits of an uptick in the economy and supported with what they need to get back on their feet,” Ms Picone said.

“While Tasmanians can be rightfully encouraged by the latest CommSec report, we know that as a state we cannot rest on our laurels.

“As it stands, Tasmania is in the midst of a housing and cost of living crisis that is compounded by our state’s low wages and high levels of personal debt.