Tasmania, for the 6th quarter in a row, topped the Commsec State-of-the-States report.
This is an unprecedent result that reinforces the strength of our local economy and the good management of Covid. Construction has led the economic charge recently with Dwelling commencements up 61.1%, Housing finance up 63.7% and construction up 12.6% on decade average. The latter is also a major driver of retail spending with people busily buying to fill new homes with furniture and whitegoods.
The fall in unemployment to 4.5%, the lowest we’ve seen it since 2009 is an extraordinary result and testament to how quickly the economy has bounced back. The construction industry has played a leading role here too, an extra 2,284 jobs created over the 12 months to May 2021.
Looking ahead the report notes that “Tasmania is unlikely to give up top spot for at least the next 6 months” meaning we can continue to show a clean set of heels to the mainland state for a while yet.
That said, our recent economic outperformance will continue to rely on keeping Covid free. Our fortunes would change very quickly if businesses were forced to lockdown, particularly if construction was no longer considered and essential service and sites were shut like we have recently seen in NSW and SA.
The full report can be found at: https://www.commsec.com.au/content/dam/EN/Campaigns_Native/stateofstates/July2021/CommSec_State_of_the_States_July2021.pdf