Export commodities like liquefied natural gas (LNG) and coal are expected to help fuel economic growth in Queensland.
Queensland Treasurer Curtis Pitt cited the latest data from Deloitte Access Economics, showing resource exports are having a positive effect thanks to big upfront investments under former State Governments to establish major new resource projects.
“DAE expects Queensland to perform better than the rest of the nation on exports and combined with the state’s strengthening domestic economy, the outcome will be ‘a GSP result that tops the nation’,” Pitt says.
Deloitte Queensland partner Natasha Doherty says praised the report’s findings, and confirmed the upturn is expected to last for at least three years.
“We expect the state’s economic growth to look good through to the end of this decade,” she says
“Three out of the four elements that make up final demand are pushing Queensland’s economy forward: They are spending by governments and families (public demand and private consumption) as well as housing construction.
“We now have to focus on the last element – business investment – which is finally showing signs of improvement. New non-residential building investment is up by 6.2 per cent over 2015 and looks positive into the long-term.
“As for resources, while much of the construction binge associated with the mining boom has run its course (new engineering construction investment is down 36 per cent), the $47.4 billion export earnings from these investments to August 2016, are providing much needed income for Queensland’s economy.”
The Sunshine State is already returning to strong, nation-leading levels of growth.
“Deloitte Access Economics[‘s] September State Outlook for Queensland is more independent evidence that our state will be setting the pace for the rest of the nation when it comes to economic growth,” Pitt says.
“Queensland’s rate of growth will outpace the national average; outpace New South Wales and Victoria; and move ahead of Western Australia.”
The report also reveals business investment in Queensland has slightly improved since 2015.
“The report follows the recent release of the latest Queensland State Accounts showing a preliminary growth figure for Gross State Product of 3.2 per cent 2015-16 — four times the figure of just 0.8 per cent for 2014-15 achieved.
“Recent figures for State Final Demand — a key measure of the domestic economy — confirm an upturn in growth thanks to our economic plan.”
The outlook forecasts strong nation-leading growth in Gross State Product of 3.8 per cent on average for Queensland until at least the year 2019.