Analysts up their growth forecast for Queensland as housing construction leads recovery

Queensland’s strengths in construction and housing are highlighted in two economic reports released today, Treasurer Curtis Pitt said.

Mr Pitt said Queensland continues to rank 5th in the CommSec State of the States report, unchanged from January.

“Queensland ranks 3rd in construction work and 3rd in population growth,” he said.

“There were encouraging signs in Queensland’s construction industry in particular, which is up 10.7 per cent on our decade average, according to CommSec.

“Meanwhile, the Deloitte Access Economics Business Outlook report for the March quarter 2015 found Queensland has a growth portfolio with housing construction, tourism, foreign education moving up a gear.

“According to the Deloitte report, housing construction in Queensland is rising strongly, and a strong lift in approvals suggests there’s more to come.”

This has led Deloitte Access Economics to up its growth forecast for Queensland from 3.6 per cent to 4.3 per cent in 2015-16.

“I am confident Queensland’s Gross State Product will accelerate in 2015-16 and it’s good to see respected analysts like Deloitte Access Economics boosting their forecasts for Queensland’s economic growth,” Mr Pitt said.

“The Palaszczuk Government has inherited weaker economic conditions than the former Newman LNP Government, with economic growth ranking at 4th in April 2015, down from 2nd in April 2012 when the LNP came to office.

“The LNP slowed the Queensland economy, which makes our task much harder.”

Mr Pitt said unemployment remained the big challenge left by the former LNP Government - a point not lost on Deloitte Access Economics, who referenced the LNP’s handling of public sector issues as a constraint on growth.

“Today’s reports again underscore the importance of the Palaszczuk Government’s Working Queensland plan,” he said.

“Last week’s ABS labour force data was welcome news, with full-time employment growing in Queensland.

“The latest labour force data revealed steady trend unemployment in Queensland, with 4,800 extra full-time jobs created in March.

“Recent ABS data also shows a high level of investor commitments for the construction of new dwellings.”

The Deloitte report predicts LNG projects will produce a huge export dividend that will drive Queensland’s output growth.

“Labor’s investment in the LNG industry earlier this decade is now paying dividends,” he said. “Increasing shipments of liquefied natural gas from Gladstone will contribute to this projected export growth.

“The production phase of Queensland’s LNG industry commenced in early January and already we’ve seen $256 million worth of LNG exports in the two months to February.

“We expect to see continued growth in exports of LNG as production ramps-up over the next year and a half and all three projects head towards full operation.”

Mr Pitt said the CommSec report ranked Queensland in the top four states for economic growth, while Deloitte predicts that Queensland will carve out a larger share of the Australian economy over time.

“There are no surprises in the reports released today,” he said. “We’re seeing some encouraging signs for Queensland amid challenging economic conditions.

“We have a pro-growth, pro-jobs agenda to get more Queenslanders back to work through initiatives such as the Skilling Queenslanders for Work program.

“We’re also supporting jobs-generating projects such as the proposed Carmichael mine. The Abbot Point dredge disposal component of the Adani project is now with the Federal Government for environmental assessment.

“We’ll continue to work with business and industry to create more jobs, grow the economy and provide more employment opportunities for Queenslanders.

“Deloitte Access Economics has recognised our intention to cut through red tape and get major projects moving in Queensland again, using the example of the multi-billion dollar Aquis resort proposed in Cairns.

“It’s an exciting time to invest in Queensland. We have established Building Queensland for major project assessment and will release our Queensland Infrastructure Plan within the first 12 months of Government.”

Media contact: Martin Philip 0427 919 548