Hannah's business survived COVID-19 but now she's feeling less optimistic

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There has been cause for optimism about Tasmania's COVID recovery, but business owners like Hannah Radcliffe are right to signal potential tough times ahead, economists say.

"So, while Tasmania's economy is doing well … [Deloitte] in particular don't expect the recent good performance to be sustained," Mr Eslake said.

Maria Yanotti says the report is based on assumptions, including COVID-19 remaining suppressed and a vaccine rolling out successfully. She said that would in turn impact whether significant investments by both governments and private companies go ahead as planned — for example, City Deals, and the transformation of the university — because they rely on growth.

"If we don't see this number of people coming, then many of those projects and investments may fall back, or at least take longer."

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