A new report has painted a grim picture of Tasmania\u2019s economic future, warning of a decade of slow growth ahead.<\/p>\n
The Deloitte Access Economics Business Outlook for June 2026 said that cost-of-living pressures and reduced government spending would put a cap on growth over the next financial year and beyond.<\/p>\n
\u201cTasmania\u2019s economy delivered a woeful result in the first quarter of 2026, with investment retreating faster than the James Boag Brewery,\u201d it said. <\/p>\n
\u201cMeanwhile, government spending is declining, and household spending is flat in per capita terms as cost-of-living pressures bite. <\/p>\n
\u201cWith many budget commitments still outstanding, the state budget will likely deteriorate even further than presented in the budget papers. <\/p>\n
\u201cTangible budget restraint is now imperative and will require broadbased spending reductions and comprehensive tax reform to safeguard Tasmania\u2019s economic future.\u201d<\/p>\n
The government has focused on spending cuts and cutting jobs to get the state budget back on track, and has ruled out new or increased taxes or asset sales. <\/p>\n
The Deloitte report says the state is facing a decade in which growth will be sclerotic \u2013 due for a combination of reduced government spending, lacklustre private investment and shaky household spending. <\/p>\n
\u201cFollowing expected economic growth of 3.0 per cent in 2025\/26, Tasmania\u2019s economy is projected to slow to 0.9 per cent in 2026\u201327 as household spending weakens. <\/p>\n
\u201cOver the medium term, growth is forecast to average just 1.7 per cent per annum over the next decade \u2013 the lowest rate nationally.\u201d <\/p>\n
Minister for Business, Industry and Resources Felix Ellis on Wednesday unveiled a draft Economic Diversification and Investment Strategy \u201cto secure the next decade of economic growth\u201d.<\/p>\n
\u201cTasmania has a lot to be proud of. We have reliable renewable energy, premium food and beverages, innovative advanced manufacturing and a brand recognised around the world,\u201d Minister Ellis said.<\/p>\n
\u201cOver the past decade, Tasmania\u2019s economy has grown by more than a quarter, created a record number of jobs and achieved nation-leading business confidence.<\/p>\n
\u201cWe must do the work and continue to deliver to ensure the next decade is just as strong.\u201d<\/p>\n
Shadow Treasurer Dean Winter said the Deloitte report was alarming. <\/p>\n
\u201cThe report outlined that years of overspending and waste that has propped up the state\u2019s economy has contributed to the worst budget deterioration in the country,\u201d he said. <\/p>\n
\u201cEric Abetz\u2019s response has been to impose massive cuts that will further weaken the economy, as Tasmanians pay the price for 13 years of Liberal waste.<\/p>\n
\u201cThe Deloitte report comes alongside the latest data from the Australian Bureau of Statistics (ABS) detailing that 7,000 jobs have been lost since this government was formed in August last year. <\/p>\n
\u201cOn these numbers, Tasmania\u2019s economy is shrinking and economic conditions are the worst they have been since the Global Financial Crisis.<\/p>\n
\u201cParticipation arguably remains the biggest economic inhibitor to Tasmanian economic growth.
\u201cChildcare options are limited and the Liberals\u2019 gutting of TAFE means it\u2019s harder than even to get access to the skills needed to contribute to our economy.\u201d<\/p>\n