Queensland is still lagging behind when it comes to the performance of our economy compared to the rest of Australia.
New South Wales remains the best performing economy, according to the latest State of the States Report released by CommSec on Monday.
Each quarter, the online broker arm of Australia’s largest bank assesses how each state and territory is performing on eight economic indicators.
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New South Wales has held onto the position of best performing economy, and sits at or near the top of all of the key economic indicators used for the rankings.
Sadly Queensland is ranked fifth, behind Tasmania.
The ACT has risen to second place, while Victoria drops to third in the overall rankings although little separates them.
CommSec Chief Economist Craig James said: “The latest data indicates a multi-speed national economy. New South Wales is solidly on top with little to separate the ACT and Victoria. Then there is a gap to Tasmania, Queensland, Northern Territory and South Australia then another gap to Western Australia.”
But the Queensland Government responded saying, while strong export growth, tourism and housing activity are expected to boost Queensland’s economic growth, CommsSec’s State of the States April report released today misses the mark on the true state of our economy.
The report indicates in terms of economic activity in the December quarter Queensland was up 16 per cent above its decade average.
The report also says “In terms of economic growth, if trend State Final Demand in real terms is used, comparing the latest result with decade averages then reveals some subtle changes in the rankings. Queensland performs better using the nominal data including trade due a strong lift in exports. In the December quarter, Queensland exports were up 43 per cent on a year ago”.
The CommSec report also pointed to post-Cyclone Debbie rebuilding and repairs as also likely to boost the economy.
However Treasurer and Minister for Trade and Investment Curtis Pitt said that while this activity was welcomed, the retrospective nature of the CommSec report resulted in a flawed picture of the state by state comparisons.
Mr Pitt said the CommSec report was out of step with a range of reports and indicators which show Queensland’s economy is performing well – our performance stands in contrast when compared with the LNP’s term in office. Queensland now has higher growth, lower unemployment and lower debt since our election in 2015.
“There is little doubt that a full view of the Queensland economy shows the State was growing and performing strongly following the mining boom and out-performing many interstate counterparts,” he said.
“For example, in last week’s NAB Quarterly Business Survey, business conditions in Queensland rose 7 points to +10, to be above the national average in seasonally adjusted terms.
“Also last week ratings agency Moody’s removed the negative outlook it applied to Queensland after the disastrous first State Budget of Tim Nicholls in 2012.
“Moody’s indicated the government’s credit quality is supported by the state’s growing and diverse economy.
“Moody’s has said: ‘Queensland is forecast to grow faster than Australia’s other states, with a forecast 4% rise in GSP in 2016-17, driven by exports, while household consumption continues to show steady growth and housing investment will grow solidly.’
“Moody’s also noted Queensland is unique among Australian states in that it has substantial financial holdings that are more than sufficient to fully fund its superannuation obligations.
“Other indicators and other surveys and analysis paint an entirely different picture to the flawed ‘league table’ approach taken by CommSec.”
“The CommSec Report tries to compare current economic indicators against decades-long ‘normal’ averages. As a result many of their performance indicators are largely irrelevant when assessing Queensland’s economic performance in 2016-17,” he said.
Mr Pitt said the “league table” approach ” of the report was simply not reflective of current circumstances and prospects.
“In addition, the report focuses on just eight basic indicators, publically available from ABS data, and provides little or no new information.
“The latest report shows Queensland sitting mid-table on their ranking list, as a result of its backward-looking methodology,” said Mr Pitt.
“CommSec’s ranking is what happens when you compare the long-anticipated wind down from the era of extremely high levels of upfront investment in major resources projects, including LNG export plants that are now contributing to growth and our $1 billion-a week export earnings,” he said.
The CommSec State of the States report released today again shows even Tasmania’s economy is outperforming Queensland – yet more proof the state is stagnating under the Palaszczuk Labor Government.
LNP Leader Tim Nicholls said CommSec had delivered a damning report card on the do-nothing Palaszczuk Labor Government.
“For Queensland to be ranked behind Tasmania and almost on par with South Australia, which can’t even keep the lights on, is just further proof Labor’s softly, softly approach isn’t working,” Mr Nicholls said.
“Sadly, we’re ranked in the bottom half of the pack on the majority of economic indicators considered by CommSec, including fifth on economic growth.
“We’ve slipped to second last on unemployment, which is now listed as the state’s biggest economic weakness.
“We’re also in second last on construction work, which has also fallen over the year and is almost 20 per cent below the long-term average.”
Mr Nicholls said this was just the latest in a string of independent economic reports to show Queensland was falling behind other states and business confidence was on the decline.
“Last week’s ANZ-Property Council survey showed confidence in Queensland falling further than any other state in the last year,” he said.
“Queensland is stagnating, the community is crying out for leadership and we have a government stuck in neutral.
“A future LNP government will Build a Better Queensland.
“The LNP’s plan will create jobs, support small business, invest in education to raise standards and we will provide better services for families and retirees.
“We will restore business confidence and get investment flowing to create jobs throughout all of Queensland.”