The latest economic data reveals Tasmania's economy shrank in September, the fourth quarter in a row.
The Australian Bureau of Statistics figures show state final demand fell by 1.5 per cent in the quarter, in trend terms.
The figure reflects a decline in the value of sales of goods and services, excluding exports.
University of Tasmania politics lecturer Richard Eccleston believes believes it is related to sluggish growth nationally.
"I don't think this is any surprise to people in the community and particularly people in business in Tasmania," he said.
"We know that the economy is doing it tough and this is increasingly recognised nationally as one of the reasons the Reserve Bank cut interest rates yesterday." "The weakness in the Tasmanian economy is really due to the structure of our economy.
We are heavily export dependent and a lot of the commodity markets in agriculture, in forestry that we traditionally exported into are very weak," he said.
"Yet we don't have that significant exposure the mining sector, so it has been a tough few years."