Tasmania’s promising economic growth

Tasmania’s economy has grown equal-second fastest in Australia in the December 2015 quarter – equal with New South Wales (0.6%) and second only to Victoria (0.8%) – according to state final demand Trend figures released by the Australia Bureau of Statistics (ABS) this week. Seasonally adjusted figures also show solid growth (0.7%), placing Tasmania fourth in the nation behind Victoria (1.2%), NSW (1.1%) and the ACT (1.0%).

The ABS figures show Tasmania’s economic growth was driven by final consumption expenditure. Household final consumption expenditure was the strongest contributor thanks largely to the Hotels, cafes and restaurants and Recreation and culture sectors.

Synectic Director Gareth Atkins says:

Great to see Tasmania showing some positive growth numbers. With international visitors up  20% in 2015 there is no doubt this has been a tourism lead recovery. However, we are seeing strong growth also in our construction, farming and forestry clients. Over the coming year the benefits should start to flow to other sectors and we believe there is plenty to look forward to in 2016!

After a somewhat weak growth in state final demand of 0.1 per cent in 2014, growth jumped to 2.8 per cent for 2015. That is the strongest growth experienced by Tasmania since 2010. The 2015 figure was boosted by the 0.7 per cent (seasonally adjusted) growth for the December quarter which followed a 0.5% increase in the September quarter.


Seasonally adjusted % change Sept 15 to Dec 15:

Final consumption expenditure
– General government 1.9 0.0 0.8 0.6 0.7
– Households 1.0 0.9 0.6 1.5 0.8
Gross fixed capital formation
– Private 0.3 2.2 0.1 -3.0 -1.9
– Public 7.0 3.3 3.1 6.9 6.0
State final demand 1.1 1.2 0.7 1.0 0.4

See more from the ABS: Australian National Accounts: National Income, Expenditure and Product, Dec 2015