Confidence in Queensland continues growing as economy improves

The latest Queensland State Accounts show economic conditions in Queensland have again continued to improve under Labor with economic growth up 1.2 per cent in real terms in the June quarter to be 3.8 per cent higher over the year.

The increase in Gross State Product of 1.2% in the June quarter 2016 was also double the rest of Australia which was up 0.6 per cent.

Treasurer Curtis Pitt said this was Queensland’s strongest quarterly growth in more than four years, a clear sign Labor’s economic plan is working.

“In little more than 18 months our economic plan and measures undertaken in two State Budgets have seen growth return to our state economy, a drop in our unemployment rate, a rise in business and consumer confidence and more jobs for Queenslanders,” Mr Pitt said.

“The Queensland State Accounts show the Queensland economy is powering and over recent weeks a range of reports and analysis have been released that highlight the positive trends in the Queensland economy.

"We have recorded the strongest economic growth in four years, since 2011-12.

“Queensland recorded a Gross State Product increase of 3.2 per cent in 2015-16, up from 0.8 per cent growth in the previous year – that’s four times the growth rate under failed former Treasurer Tim Nicholls.

“Household consumption, the largest component of Queensland’s Gross State Product, rose 2.4 per cent in 2015-16 which shows confidence amongst Queenslander’s is growing.

“Our housing sector also remains strong with dwelling investment up 14.3 per cent in 2015-16, the highest growth in 13 years.

“Looking ahead, a strong pipeline of units and apartments, particularly in inner Brisbane is likely to drive continued growth in dwelling investment in 2016-17.

“The Palaszczauk Government’s focus on job creation is paying off with the latest Labour Force data show the State’s trend unemployment rate edged lower to 6.1% September 2016.

“This is a full half a percentage point below the 6.6% rate in January 2015, when we were elected.

“Over this same period, employment has risen by more than 40,000 persons.

“The Palaszczuk Government will continue its focus on supporting our state’s businesses, job creation and getting disadvantaged Queenslanders back into work.”

Mr Pitt said economic growth in Queensland is expected to strengthen further in 2016‑17, driven by a further ramp up of LNG exports and some improvement in domestic activity.

“In its latest Business Outlook publication, Deloitte Access Economics forecasts the Queensland economy to grow 3.7% in 2016-17 and 3.9% in 2017-18,” Mr Pitt said.

“These forecasts are broadly in line with Treasury’s 2016-17 Budget forecasts, as well as a range of other private sector forecasters, such as the Commonwealth Bank, NAB and Westpac.

“The latest NAB Quarterly Business Survey also provided some positive news on the economy, with Queensland the only state to record an increase in seasonally adjusted business conditions in September quarter 2016. 

“Importantly, all these forecasts show Queensland is expected to record the strongest economic growth in the nation in 2016-17, while Deloitte expect this trend to continue through to 2025-26.

“Prospects for the Queensland’s resources sector continue to improve with the recent strong rises in coal prices on spot markets now flowing through to some more tangible benefits.

“In particular Glencore has announced they will start recruiting for more than 200 jobs as its Collinsville Coal mine returns to production.

“In addition, Australia Pacific LNG has confirmed the start of operations from its 2nd LNG production train.

“This now sees all six LNG trains up and running, and with it boosting the State’s exports and economic growth.”

Media Contact: 0419 945 546