Tasmania’s peak business lobby believes the state’s economy is in recession.
New figures from the Australian Bureau of Statistics show private investment by big business is down 27 per cent in Tasmania but nationally it has grown by 2.5 per cent.
Tasmanian Gross State Product is also down 0.4 per cent.
Chamber of Commerce and Industry Chairman Troy Harper says taking into account the impact of federal stimulus funding shows Tasmania’s per capita result is closer to minus 0.5 per cent.
When the Federal stimulus money dries up, Mr Harper says the economy will contract and businesses will have to find investment to drive the economy.
“What these figures say is that we haven’t seen the worst of this yet,” Mr Harper said.
Former ANZ Bank chief economist Saul Eslake says without private investment the state cannot create jobs.
“Investment is the most important long-term driver of both economic and employment growth, ” Mr Eslake said.
“Moreover there’s nothing immediately on the horizon to suggest that business investment is likely to pick up in Tasmania anytime soon.”
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