Tassie’s booming start to the year
THE State Government has hailed strong final demand figures in the March quarter — the second strongest in the nation after Victoria.
Australian Bureau of Statistics national account figures recorded Tasmanian growth at 4 per cent for the quarter.
Expenditure was at an alltime Tasmanian record of $8.2 billion amid a tourism boom.
Nationally, the Australian economy grew by 1 per cent in the quarter taking annual growth to 3.1 per cent.
ABS chief economist Bruce Hockman said growth in ex- ports accounted for half the growth in gross domestic product and also a 2.9 per cent growth in mining exports.
Treasurer Peter Gutwein said the growth was mainly occurring in the private sector via buoyant household consumption and private investment.
“When businesses are confident, they invest more and employ more people — today’s national accounts show that private investment grew by more than 11 per cent over the last year which was the highest growth rate of investment in the nation,” he said.
He said private investment was underpinned by an in- crease of 49.6 per cent in private investment in machinery and equipment, and a 20.4 per cent increase in non-dwelling construction.
“This shows that Tasmanian businesses are gearing up and are expecting continued growth,” he said.
Mr Gutwein said that since the Hodgman Liberal Government was elected, state final demand had grown by 10.5 per cent and 11,000 jobs had been created.
Nationally, CommSec senior economist Ryan Felsman said the March quarter’s economic growth, the equal best rate recorded in six years, took Australia’s economic expansion well into its 27th year.
“The Aussie economy is in rude health,” he said. “We share the Reserve Bank’s view that growth will be stronger this year than last year.”
Despite the strong headline figures, consumer spending remained weak, rising 0.3 per cent in the quarter, with much of that going on insurance, energy and fuel bills.
JP Morgan economist Tom Kennedy said longer-run growth prospects remained less upbeat because household consumption was hamstrung by benign wage growth and a low saving rate.