More hard data shows economic upturn

The latest ABS economic growth figures for the March quarter show Queensland’s domestic economy grew for the fifth straight quarter after eight consecutive quarters of contraction.

Treasurer and Minister for Trade and Investment Curtis Pitt said the figures were more hard evidence of the upswing in the state’s economy under the Palaszczuk Government’s economic plan.

“The ABS figures show State Final Demand grew by 0.4 per cent in the March quarter on a trend basis to be 1.8 per cent higher over the year – above the national average of 1.7 per cent,” Mr Pitt said.

“This is very significant because State Final Demand, unlike Gross State Product, does not take our trade performance into account so it is a key measure of the state’s domestic economy.

“On a seasonally adjusted basis SFD was flat in the March quarter and grew 1.6 per cent over the year.

“Our growth as a state has been largely driven by our strong export performance, which is why our economic plan has focussed so much on boosting our domestic economic performance.

“The fact we have now had five consecutive quarters of positive growth in State Final demand confirm the upswing in the state’s domestic economy."

A 0.6% (trend) increase in household consumption drove the solid outcome in SFD in the March quarter.

Public final demand also rose 1.0% in March quarter 2017, to be 1.8% higher over the year, largely driven by a rise in General Government Investment in the quarter.

"While this result is encouraging, we recognise we need to do more to deliver more inclusive growth across Queensland," he said.

"The 2017-18 State Budget which I’ll deliver next Tuesday will build on these results and drive more economic growth, build more economic infrastructure, create more jobs and encourage investment and innovation.

"This will be a jobs budget and we’ve already announced the Powering Queensland Plan, which is an investment of $1.16 billion to ensure affordable, secure and sustainable energy supply for Queensland homes, businesses and industry.

"Projects include $150 million to develop strategic transmission infrastructure in North and North-West Queensland to support a clean energy hub and support up to 4600 jobs and a $100 million equity injection into SunWater and reinvestment of dividends to deliver improvement works to the Burdekin Falls Dam and support 250 jobs and invest $100 million to help fund a 50 megawatt hydro-electric power station at the dam, subject to completion of a business case and create 200 jobs during construction and generate enough electricity to power 30000 homes."

The Treasurer said these projects are exactly the types of projects regional Queensland needs to grow and prosper and the 2017-18 Budget will deliver more infrastructure and more services across the state.