Outlook better for state than nation

THE Tasmanian business community has more confidence in the outlook for the local economy than for the national economy, a survey by the Tasmanian Chamber of Commerce and Industry has found.

Chamber chief executive Michael Bailey said international events might have affected confidence in the national economy in the second-quarter 2017 survey.

“It could be because of uncertainty with Brexit and President Trump or even fear that the property bubble might burst,” he said.

“The results also serve as a message to the Federal Government that it is underperforming.”

“The Federal Government must recognise the regional nature of the Tasmanian economy and provide greater certainty in its approach to economic matters.”

The Federal Budget con- tained little new infrastructure spending but a 10-year, $730 million deal on the Mersey Community Hospital at Latrobe will be worth $70-80 million a year to the State Budget.

The survey comes as the national economy faces skyrocketing energy prices and budget deficits.

Tasmania has had a good recent run of economic indicators including unemployment, retail trade figures, tourist visitation and construction.

Mr Bailey said there needed to be a concerted and focused education and training environment if there was to be continued jobs growth.

He said all three regions had an increasingly positive expectation for the Tasmanian economy. “Population growth has been greatest in the South, with the other two regions stable,” he said.

“The South has shown the highest participation rate, and the lowest unemployment rate, together with the NorthWest.

“The North is still showing a low participation rate, although the unemployment rate is trending down.”

The survey shows a statewide average of 56 per cent positive, 30 per cent neutral and 13 per cent negative for the Tasmanian economy compared with 19 per cent positive, 63 neutral and 17 negative for the national economy.