Tasmania finished on top of the economic ladder on most indicators before the coronavirus pandemic hit but the reality is that it won't start there in recovery.
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Tasmanian economist Saul Eslake said the state had taken a significant economic punch with the decimation of the tourism industry.
However, not all hope is lost for the state's economy, with other industries able to thrive and give rise to the potential for a new Tasmanian economic makeup.
Premier Peter Gutwein is expected to announce the government's recovery plan on Thursday, but some industries are already there.
"Tourism accounted for 10 per cent of Tasmania's economic activity and 17 per cent employment, which is a higher proportion than other states," Mr Eslake said.
"The reality is encouraging Tasmanians to holiday at home and see their own state won't make up for the shortfall."
Despite this outlook, Mr Eslake said Tasmania entered the coronavirus pandemic in a "strong fiscal position" and as such has been able to so far weather the impacts of this upheaval.
The latest CommSec State of the State's report released this week for April revealed Tasmania had shared the top spot for the best-performing economy with Victoria before the pandemic.
"The hit from coronavirus has hit all states, but it won't help our recovery that we were performing better," Mr Eslake said.
He said the top indicators from the report were tourism and property, which was bolstered by the tourism market through Airbnb and short term rentals, as well s encouraging people to move to Tasmania.
However, he said the pandemic had opened up an opportunity for Tasmania's economy to be reinvented, through new and emerging markets.
"What the pandemic has shown is that there's a weakness in our economy due to our reliance on imports," Mr Eslake said.
He said there were industries in the state that would prop up our recovery from the virus.
Agriculture is one of Tasmania's pillar industries, Mr Eslake said and there was potential for even more growth in Tasmania beyond what it was already contributing in the form of export fruit and vegetable goods.
"Tasmania exports a lot of food but the pandemic has shown risk in reliance on imports and exports so there is potential in expanding the domestic market," he said.
"Food and beverage processing is also something that we likely see grow, as we look to produce more things at home," he said.
Tasmania is has been developing a fermentation industry, through relative new industry body FermenTasmania working with producers to produce boutique products in the state.
Also, Mr Eslake said he would anticipate renewable energy to be a stronger part of the economic mix, in light of the Battery of the Nation and Project Marinus two key projects spearheaded by the state government.
Outgoing Launceston Chamber of Commerce executive officer Neil Grose said agriculture offered a unique advantage for Tasmania.
"What we might see if more products being made on-island, there's definitely an opportunity there," he said.
However, he said one way that Northern Tasmania could bolster its recovery post the virus outbreak was through advanced manufacturing and IT services.
"At the moment it's all about technology and how that can be done anywhere. Advanced manufacturing can adjust its links to market to supply where it's needed."
Mr Grose said he expected there may be an upswing in demand for IT services, particularly if the existing working from home environments become more permanent for employees who can.