Queensland Economy Set to Grow Further: Fraser

14 December 2007

Queensland Economy Set to Grow Further: Fraser

Queensland’s outstanding economic growth is expected to again eclipse national growth - for the twelfth successive year.

Releasing the 2007-08 Mid-Year Fiscal and Economic Review today, Treasurer Andrew Fraser said with anticipated economic growth now at 5¼ per cent – up from an initially forecast 5 per cent – Queensland was well ahead of the national forecast of 4¼ per cent.

Mr Fraser said Queensland’s average unemployment rate was expected to remain at a generational low of 4 per cent, representing the fourth successive year the State has remained below the national rate.

“The Review shows Queensland continues to remain in extremely good economic shape, with our finances solid and an economy that continues to grow strongly,” the Treasurer said.

“We are delivering a surplus while continuing to roll-out the most ambitious capital works program in the state’s history. The Mid-Year review projects an operating surplus of $213 million for 2007-08.

“Overall receipts from taxes and royalties have increased by $330m. Projected increases in transfer duty are partially offset by declines in royalties, particularly in coal.”

“Increased costs in CSO payments to Ergon and revisions to superannuation liabilities have more than offset the change in tax and royalty revenue.

“As we ramp up our capital program, we see an acceleration in finance raising this year but project that our General Government borrowings across the forward estimates will be $617m lower than forecast in the Budget.

“Queensland also continues to have a balance sheet that is the envy of other jurisdictions with negative net debt,” Mr Fraser said.

“These results reflect a strong and growing economy. Our fiscal strategy is to invest in future productive capacity to sustain that growth. We make no apology for our strong investment in capital works, now is the time to build for our future.”

Media Contact Treasurers Office 3224 6900