Infrastructure Program Protects Jobs, Keeps Economy Growing

The nation’s largest building program, the Bligh Government’s $17 billion infrastructure program, would help Queensland avoid recession, Treasurer Andrew Fraser said today.

Releasing the 2008-09 Economic and Fiscal Update, Mr Fraser said Treasury now forecast the Queensland economy to grow by 2.5% this financial year.

“Our growth has again been revised down as the global financial crisis takes hold,” Mr Fraser said.

Having declared unemployment public enemy #1 at the end of the last year, Mr Fraser today said Treasury was forecasting rising unemployment from the middle of this year.

“The updated forecasts for unemployment of 5% monthly unemployment by June this year are in line with the mid-year revision of 4.25% for the year.

“Next financial year unemployment is expected to average 6.25%, reaching around 7% in early 2010, as economic growth is predicted to slow to 1%.

“In human terms this means an unemployment queue as long as 160,000 next financial year.

“We are in for a tough time through the middle of this year, with the EFU pointing to the beginning of any recovery in late 2009 at the earliest.”

“The world, our nation and our state are all coming to grips with a new reality, a different growth path well below the norm.”

Contact (Treasurer’s office): 3224 6361 or 3224 5982