Island economy walks away with a seventh best performance
TASMANIA was largely left alone for many decades, until a sequence of extraordinary global events.
Australia’s soaring currency after the global financial crisis meant international travel was comparatively expensive and domestic tourism boomed.
The state’s natural beauty and relative obscurity became a drawcard, translating to strong interstate migration and rising property prices.
And when Australia was plunged into isolation in the pandemic, the state’s walking trails, wineries and restaurants were again flooded.
Its popularity has been a boon for the state’s economy, with Tasmania the best-performing Australian jurisdiction for the seventh consecutive quarter, according to CommSec’s regular State of the States report.
From the eight indicators used, Tasmania leads on four and is ranked second on another three.
CommSec chief economist Craig James said visitors “liked what they saw, with a lot of people deciding to move there and work there”, which was boosted further by an influx of government investment.
“Certainly over the Covid period, Tasmania has been one of those in perfect isolation and managed to hold up its economic performance,” Mr James told NCA NewsWire.
ACT ranks second, followed by Western Australia and NSW in equal third place and Victoria and SA in equal fifth, with all jurisdictions proving buoyant overall, he said.
“We do believe all the states and territories have performed well ... and provided they continue to support consumers and businesses on the way out, then the momentum should be sustained,” Mr James said.
“But ... when you have gone through a period of crisis and you’ve had fiscal and monetary policy support, you’re always concerned that perhaps the taps will be turned off a little bit too quickly.”