Queensland economy maintains strong growth trajectory

Queensland continues to outperform interstate counterparts according to a series of recent business surveys, private sector forecasters and ABS hard data - contrary to CommSec's State of the States Report.

Treasurer Curtis Pitt said based on latest Commonwealth and state government publications Queensland is expected to have the fastest growing state economy in 2016-17 and 2017-18. This is on the back of a strong performance in 2015-16.

“While CommSec's report rightly shows Queensland moving up its ranking table, it doesn’t provide an accurate measure of current economic performance,” said Mr Pitt.

CommSec’s report ranks Queensland 5th on economic growth and shows that dwelling starts (second) and population growth (third) are the State’s best ranking categories. 

The report also says that “the strong level of home building will support the job market as well as consumer and business spending. Queensland should also benefit from higher revenues from tourism and rural exports”.

"While I acknowledge these comments, I have advised CommSec the reports methodology is flawed given it compares current economic indicators against decades-long ‘normal’ averages," Mr Pitt said.

"This means the report focuses on the historic highs of LNG construction which started back in 2011, rather than offering an accurate insight into Queensland’s economy in this moment.

"CommSec itself has acknowledged that its report looks backwards not forwards. It has also acknowledged its report excludes our trade performance which I have said on a number of occasions has been a key driver of Queensland's and the nation's economic growth.

"The value of Queensland’s Overseas Merchandise Exports over the year to November 2016 was over $49 billion so to exclude this is meaningless.  

“The full picture of the Queensland economy shows the State is transitioning well following the mining boom and out-performing many of our interstate counterparts."

A range of reports and indicators showed Queensland’s economy was performing and growing strongly:

• The $2.026 billion surplus was the largest net operating surplus since 2005-06

• State Final Demand, a key measure of the state’s domestic economy, rose 0.4 per cent in trend terms in the March, June and September quarters of 2016 – the first positive results since the December 2013 quarter. Unlike Gross State Product, State Final Demand does not include trade performance.

• The value of Queensland exports increased $458.2 million to be $49.5 billion over the year to November 2016. Australia’s export value decreased by $6.0 billion over this period. With all six LNG trains exporting, the ramp up in LNG exports, along with a fall in LNG related imports, show the trade sector continues to make a strong contribution to Queensland economic activity. 

• ABS employment figures showed the state’s trend jobless rate steady at 6.0 per cent in December 2016 – down from 6.6 percent under the LNP. 

Mr Pitt said that while the State overall was tracking well, this growth is yet to be shared equally among our regions. 

“But there are a growing number of positive signs,” he said.

“The recent rebound in commodity prices will support mine viability and job opportunities, while improved rainfall during the winter and spring months in 2016 will help the State’s agriculture producers who have suffered through years of drought. 

“Not to mention the recent boost in tourist arrivals, international education enrolments and housing construction."

More importantly, in December the Palaszczuk Government also announced key initiatives to drive projects and jobs in regional Queensland including: 

• A $200 million Jobs and Regional Growth Package with an extra $160 million to work with the private sector and encourage regional business opportunities, and 

• A $200 million Works for Queensland program to support local councils across the state undertaking job-creating, maintenance or minor infrastructure projects. 

"We also have a comprehensive infrastructure program of $40 billion over 4 years to drive economic growth across the state," Mr Pitt said.

“All this paints a very positive true economic story for Queensland – a different story to the State of the States report.”

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