Deloitte report confirms Tasmania’s economic recovery is well underway

Peter Gutwein,Premier & Treasurer

The Deloitte Access Economics Business Outlook Report for December 2020 confirms that our Plan to Rebuild a Stronger Tasmania is working.

The report estimates strong economic growth for Tasmania of 3.4 per cent in the 2021 calendar year, which is commensurate with or higher than four other jurisdictions, while also estimating employment growth of 0.6 per cent in 2020-21.

The report notes the improved outlook has been driven through the strong and early measures we implemented to control the COVID-19 pandemic, as well as the record State and Federal Government stimulus measures, which have generated relative strength in the housing market, strong retail trade rebounds, and public spending on infrastructure.

Importantly, the report again confirms that Tasmania’s economy came into COVID at a time when it was firing on all cylinders, and the measures we took to control the virus have been a clear success story that has allowed our State to rebound and recover. Indeed the report noted our success allowed our: “retail sector hit the ground running, outpacing the national economy as Tasmanians eagerly hit the shops.”

The report also mentions our recent achievements on the renewables front, including becoming 100% self-sufficient in late 2020 and progressing the Battery of the Nation and Marinus Link projects, both of which will generate large amounts of economic activity for the State.

And, the report notes that “Tassie’s housing market is looking remarkably good – helped along by record low interest rates and government stimulus measures that have supported elevated residential construction activity”

Importantly, the report also endorses the strong measures we have taken in the 2020-21 Budget to help our State recover, saying:

“The State Government has also shown that it will do everything in its power to get the economy moving again producing a gangbuster state budget. The centrepiece is a $5 billion infrastructure program – investing in roads, essential services (such as education and training, health and housing) and tourism. The State Government is moving fast on procurement to get major projects (such as the new Bridgewater Bridge) going as soon as possible – keeping construction activity afloat in the state.”

While this is good news that confirms our economy is heading in the right direction, we know there is more to do, which is why we will continue to support investment and jobs, getting Tasmanians back into work, and rebuilding Tasmania to be the economic powerhouse it was before the COVID-19 pandemic

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