Tasmania's economic growth best in 15 years, ABS finds

Posted: 18th Nov

"This extraordinary result is the first time since the series began in 1989 - 30 years ago - that Tasmania's economy grew the fastest in the nation," state Treasurer Peter Gutwein said.

"In another series first for Tasmania, all 19 industry sectors grew throughout the year, meaning that our economic success is diverse and broad-based, benefiting our businesses, right around the state, and creating jobs.

"This extraordinary outcome demonstrates the resolve and commitment of the government to grow our economy and create jobs so that we can invest record amounts into essential services and infrastructure for our booming state.

"Our plan is clearly working, but we know there is more to do to ensure that all Tasmanians can share in our new-found economic prosperity."

The ABS said Tasmania's 3.6 per cent annual growth was its strongest since 2003-04.

It said gross value added (which relates to output) increased by 7.4 per cent in Tasmania's biggest industry, healthcare and social assistance.

That reflected "the broad-based strength in this industry through national and state expenditure on hospital, disability and aged care-related services," it said.

"Employment growth in the health industry was also observed in 2018-19, aligning with increased activity."

Construction had the state's strongest increase in gross value added (GVA) at 8.8 per cent.

The ABS said that related to ongoing public infrastructure investment and private investment in dwellings and non-dwelling construction.

"Non-dwelling construction was driven by investment in accommodation buildings, reflecting high demand from tourism," it said.

"Rises in accommodation and food services GVA (5.6 per cent) and arts and recreation services GVA (6 per cent) reflect growth in discretionary (non-essential) spending by residents, as well as increased tourism activity recorded in 2018-19."

It said agriculture, forestry and fishing had modest growth of 2.3 per cent, with Tasmania benefiting from better growing conditions than those in the rest of Australia.

Tasmania recorded GVA growth in all industry sectors, but the gains were small in the financial sector, mining and the transport sector.

Source: The advocate - https://www.theadvocate.com.au/story/6494381/tasmanias-economic-growth-best-in-15-years-abs-finds/