Dark Horse Tasmania Could Offer High Growth Potential
Recent figures released by the Australia Bureau of Statistics (ABS) show the lowest population growth in the country is recorded in the island state of Tasmania. Statistics indicate that more Tasmanians left the state during the first quarter of the year than arrived there.
According to the ABS data, Tasmania saw a low population growth of 0.1 per cent. This compared to the national growth average of 1.8 per cent. In other words, the state's population which is just over 512, 000 saw an addition of only six hundred people. Explaining the dynamics of the population figures in Tasmania, ABS director of demography, Bjorn Jarvis told ABC News that the low growth average was mainly due to young people leaving the state. "Tasmanians particularly in their 20's and 30's are leaving Tasmania to go and live and work in other states and territories before coming back to Tasmania later in life," Mr Jarvis told ABC News.
Tasmania's resources sector has been much smaller compared to the boom experienced in other regions like Western Australia and Queensland where investments have been channelized.
But that trend may change soon, if a recent report entitled, "Positioning for Prosperity? Catching the next wave," by consulting firm Deloitte is to be believed. The Deloitte study finds that after having struggled for over a decade, the economy of the state could begin to look up over the next 20 years.
Deloitte identifies five super-growth sectors which hold the key to Australia's future prosperity. The report says that these five sectors are worth an extra $250 billion to the national economy over the next 20 years period. These include resources (gas), agribusiness, tourism, education and wealth management.
Tasmania is not well position to benefit from the potential in the gas sector, says the Deloitte report. The state, however, has core advantages in agribusiness, tourism and education, and wealth management sectors.
During the first wave of economic growth, Asia saw a peak in demand for resources, however, accordingly to the Deloitte report, the coming decades will see growth in demand for high value food products in which the State specialises.
The state can also expect to grow its tourism industry exponentially in the next two decades provided it can get airline capacity in order.
In the education sector, most of the universities outside the state have a greater percentage of international students. A rapidly growing middle-class in Asia, offers Tasmanian institutions an opportunity to expand from the current proportion of one in 10 global students studying in the state.
Deloitte, finds similar potential in Tasmania in the wealth management industry, which although small presently, offers good growth potential.
Considering, its projected growth, Tasmania will be a state to look out for, in the coming years.
June 22, 2015
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