Tasmania climbs to outright third on CommSec economic ladder

Posted: 29th Jul

The state had improved from equal third with the ACT three months ago to now be a clear third behind only Victoria and New South Wales, according to the latest CommSec State of the States report.

"Tasmania is now solely in third spot on the performance rankings, with strength in the building and purchase of homes," the report said.

State of the States ranks recent state and territory economic performance against their decade averages on eight indicators to measure how well they are doing compared to their "normal" performance.

Tasmania was the nation's strongest jurisdiction for equipment investment, home lending and relative population growth in the latest report, third for construction work and second for home building.

It topped the nation for new vehicle registrations, although that was not one of the eight indicators used for the overall rankings.

If it was, CommSec said, it would have pushed Tasmania ahead of New South Wales into outright second.

New vehicle registrations were 10.4 per cent stronger than their decade average.

Victoria and Tasmania each topped the nation on three of the eight key indicators.

Unemployment was Tasmania's weak spot.

Tasmania rated fifth on that measure, with an unemployment rate 4.9 per cent above its decade average.

"The trend jobless rate in Tasmania has been 6.7 per cent for the past three months," the report said.

"The jobless rate is the highest since November 2014."

Victoria had the strongest jobs market.

Tasmanian housing finance commitments were 11.3 per cent stronger than their decade average.

The state's 1.24 per cent annual population growth rate was 114 per cent above its decade average, well ahead of the other states and territories.

Tasmania had the fifth strongest population growth rate overall, behind the three big eastern states and the ACT.

The report ranked Tasmania fifth for economic growth, based on combining state final demand and trade figures.

Tasmania was up by 6.5 per cent compared to its decade average on that measure.

CommSec suggested Tasmania might push further up the ladder.

" ... the strength on relative population growth, home purchase and construction could see the Apple Isle battling with New South Wales and Victoria for top position in the year ahead," it said.

Source: The Advocate - https://www.theadvocate.com.au/story/6294891/tasmania-up-to-third-on-economic-ladder-but-employment-soft/