Economic recovery continues according to new data

Peter Gutwein,Premier and Treasurer

New ABS data released today has confirmed our economy is continuing its recovery from COVID-19 and our plan to rebuild a stronger Tasmania is working.

Private new capital expenditure for the December 2020 quarter grew 17.2 per cent in real seasonally adjusted terms, the highest growth of any State, and over five times higher than the national growth of just 3 per cent.

Incredibly, and despite still recovering from the pandemic, private investment grew 10.2 per cent over the year, bucking the national trend that saw nearly all other states and territories decline over the same period.

Private investment was underpinned by the highest annual growth in Equipment, Plant and Machinery in Australia, increasing 43.5 per cent over the year, and state-leading quarterly growth of 26.9 per cent. This is a great vote of confidence in our State and demonstrates the resilience and confidence of our business sector as it continues to invest and grow.

Confident businesses hire more workers, and this is exactly what we are seeing in the jobs data. Employment is now back to pre-pandemic levels, and we have the lowest unemployment rate of the states.

The data coincides with the ANZ Stateometer Report also released today which notes our “booming” housing market, exports that “surged” in the December 2020 quarter and are well above pre-pandemic levels, as well as forecasting strong economic growth next year.

And contrary to David O’Byrne’s false and misleading assertions today, Tasmania’s economy is actually performing above the national average and better than four other jurisdictions, as measured by the Stateometer index.

Mr O’Byrne may want to talk down our State at every opportunity but despite his constant whingeing, negativity and attempts to undermine business confidence, these results are yet more evidence that our Plan is clearly working, but we know there is more to do.

That’s why we will continue to focus on growing our economy and creating even more jobs as we rebuild a stronger Tasmania.

/Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.