Tassie high on economic growth spurt

TASMANIA’S economy is the strongest it has been in years because of good global growth and a lower Australian dollar, the latest Deloitte Access Economics business outlook says.

“Farm exports to Asia and tourists from elsewhere in Oz are creating job opportunities that are attracting more Australians to move to the Apple Isle,” Deloitte Access partner Chris Richardson said.

“The recovery in population growth looks like it’s here to stay.”

Treasurer Peter Gutwein said the Deloitte report showed that the Tasmanian economy was the strongest it had been in years.

However, Labor said the good times were a result of global conditions rather than Government reforms.

Mr Gutwein said the economy had come a long way since the dark days of the Labor-Green Government.

“People were leaving Tasmania in droves and they drove the state into recession,” he said.

The report highlighted Tasmania’s booming exports sector as a key driver in the economic resurgence.

Mr Gutwein said Tasmania produced what the world wanted and that more exports equalled more jobs for Tasmanians and a stronger, growing economy.

“Business confidence in Tasmania is also the highest in the nation, with business investment increasing as a result,” he said.

Other highlights in the report included:

Tasmania’s tourism sector continued to boom, with visitor numbers growing at an average annual rate of 8.4% over the past five years;

$1.8 billion worth of construction under way, with a further $2.1 billion across the various planning stages; and strong population growth as more people than ever choose Tasmania as the place to live, work, and raise a family.

Opposition Treasury spokesman Scott Bacon said the report showed that the Tasmanian economy was performing well because the global and domestic Australian economies were growing.

“Deloitte reported that even though Tasmania is enjoying economic growth, its share of Australia’s economy will continue to fall over the medium to longer term,” Mr Bacon said.

“The Tasmanian economy is export-orientated, exporting over twice as much as it imports.

“The Liberals like to take credit for good economic conditions, yet they cannot point to a single economic reform they have implemented since they arrived in government over four years ago.

“When the global economy slows or the Australian dollar rises this will have a negative affect, effect on the economy.