Tasmanian economic growth leading the country

Posted: 27th Jun

Economic growth measure state final demand increased by 1 per cent to $8.756 billion in the March quarter in trend terms, the Australian Bureau of Statistics estimated.

That took annual growth to a thumping 5.2 per cent, also the nation's strongest.

State Treasurer Peter Gutwein said the figures confirmed Tasmania had the nation's strongest economy.

"These results demonstrate that the Hodgman Liberal government's plan for Tasmania is working," Mr Gutwein said.

"In contrast, national GDP growth was just 0.3 per cent in the March 2019 quarter and 1.7 per cent over the year.

"Tasmania's strong economic growth was underpinned by the highest annual growth in the nation in household consumption (2.7 per cent) and private investment (6.4 per cent), demonstrating continued confidence in Tasmania's future.

"Today's figures reinforce the core tenet of the 2019-20 state budget, which is all about maintaining this extraordinary momentum and investing for even more growth with record investments in infrastructure, health and education."

The ACT and Victoria were the next strongest performers in the March quarter, growing at half Tasmania's rate.

Tasmanian household consumption was restrained in the March quarter, growing by just 0.2 per cent, or $11 million, to just more than $5 billion.

Government spending played a bigger role in the growth.

Public sector investment increased by 4.2 per cent ($23 million) to $571 million.

Public sector consumption spending increased by 1.5 per cent ($29 million) to $1.954 billion.

Private investment increased by 1.6 per cent ($18 million) to $1.222 billion.

Source: Sean Ford - The Examnier - June 5th 2019 - https://www.examiner.com.au/story/6202026/tasmania-roars-into-top-spot-on-economic-growth-table/?cs=95