Queensland economic growth reaches 6.8 per cent: Fraser

30 October 2007

Queensland economic growth reaches 6.8 per cent: Fraser

Treasurer Andrew Fraser has today released Queensland’s 2006-07 Annual Economic Report which shows Queensland’s economic growth for the year was a remarkable 6.8 per cent.

“We are out in front, and by a long way - the rest of the country has booked 2.5 per cent, while national growth is less than half our growth, at 3.3 per cent,” Mr Fraser told State Parliament today while tabling the report.

“This 6.8 per cent growth figure is an eight-year high and its delivering jobs and building a platform for continued and sustained growth.

“Our task now is to build upon this growth, to bank the benefit and not idly watch, but actively engineer a future growth path.

“The report highlights the fact that the nominal value of the Queensland economy surpassed $200 billion for the first time.

“To put that in context, Queensland’s economy is larger than Singapore at $182 billion and New Zealand, at $145 billion and ranks alongside Malaysia with an economy of $213 billion.

“We are on par with these economies and are recording growth rates normally seen in booming regional economies.”

The report highlights the rapid pace of the state’s economic expansion and exceptional employment outcomes achieved in Queensland during the last financial year.

It shows:

• One in three jobs created in Australia was created in Queensland, with employment skyrocketing by more than 92,000 jobs – of which more than 84,300 were full time jobs
• Unemployment reached an historic 4 per cent for the year – subsequently driving lower to 3.6 per cent in September
• Business investment surged a further 19.1 per cent and, as a consequence, the volume of business investment totalled almost $30 billion, more than double that of five years earlier
• Investment by public trading enterprises has doubled over the three years to 2006-07
• Investment by the state and local general government sector rose by 23.4 per cent, its highest rate of growth in seven years

Mr Fraser said despite higher interest rates over the year, household consumption remained a key component of economic growth, supported by excellent labour market conditions and solid population growth, as well as strong growth in household incomes.

“In contrast to the modest 1.4 per cent growth in the rest of Australia, dwelling investment in Queensland surged 10.1 per cent.

“The volume of Queensland exports of goods and services rose 2.7 per cent, driven by growth in coal exports which rose 7.3 per cent to total more than 150 million tonnes.”

He said the government was determined to build upon the growth for the future.

“This government is not only setting the economic pace for the nation, it is ensuring tomorrow’s Queensland remains an economic powerhouse for our future generations.”

Media Contact Chris Taylor 3224 5982