Tas economy performing well, but investment concerns need to be addressed

Release Date: 5/03/2020
The Tasmanian Chamber of Commerce and Industry has welcomed ABS figures that confirm Tasmania’s economy is still the fastest growing of any state in Australia.
TCCI CEO, Michael Bailey, said State Final Demand figures are a good indicator of the health of the State’s economy.
“Overall, the figures show that our economy is strong and businesses should continue to be positive about the future.  With final demand growth of 2.1 per cent in the 12 months to December 2019, Tasmania is streaks ahead of bigger states like Victoria (1.7%), New South Wales (1.2%) and Queensland,” Mr Bailey said.
“However, a closer look at the figures shows that the Government and the business community need to work closely together to ensure we continue to boost investment.  Treasury’s own analysis shows that dwelling investment, business investment and public investment declined in the December quarter last year.*
“There’s no doubt the Cornonavirus will impact Tasmania’s economy, both in terms of local activity and domestic and international exports.  Increasing new dwelling investment, business investment and public investment is the perfect way to support the economy through what is going to be a challenging time ahead.
“The Federal Government is already looking at bringing forward infrastructure spending.  We encourage the Tasmanian Government to look at a similar plan and a commit to work with businesses to support them to bring forward private investment as well.”
Mr Bailey said the Tasmanian Chamber of Commerce and Industry and businesses right across the State would welcome the opportunity to work with the Tasmanian Government to ensure our economy remains strong, that more jobs are created and that we support the community through the challenging times ahead.
* https://www.treasury.tas.gov.au/Documents/National-Accounts.pdf

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