Queensland's growth to top the nation
Slowly but surely
8 November 2016: As Queensland’s domestic economy and its exports strengthen, growth in the state’s Gross State Product (GSP) is forecast to top the nation this financial year. And nor does the good news end there: co-author of Deloitte Access Economics’ September State Outlook, Queensland partner Natasha Doherty says: “It is good news for Queensland; and it’s a position we expect will hold over the next few years. We expect the State’s economic growth to look good through to the end of this decade.”
She explained: “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% over last year 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%), the $47.4 billion export earnings from these investments to August this year, are providing much needed income for Queensland’s economy.”
A tale of two regions
Deloitte Access Economics partner Mark Ingham said: “The unemployment rate in Greater Brisbane continues to be below that in the rest of Queensland, and the gap is widening.
“The lower Aussie dollar is supporting the State’s tourist and international student numbers. And our sustained low interest rates are helping both housing construction and retail spending.”
Tourism – a case of happy holidaying
International overnight visitor expenditure has surged, growing by 10.6% to a record $5 billion plus for the year to June.
Ingham said: “This spike in international visits is no aberration. It is set to continue, with our forecasts showing international arrivals growing 6.8% each year on average out to 2019.
China remains Queensland’s largest source market for visitors and visitor expenditure, with Chinese tourists increasing this quarter to 468,000 visitors over the year, a phenomenal 30.5% growth. Their spend also grew by 25.6% to total approximately $1 billion.
Where to next?
“With a coordinated approach from business, community and all levels of government, there is a significant opportunity to further unlock prosperity for all Queenslanders,” Deloitte Managing Partner Queensland John Greig said.
“At Deloitte we are playing our part by working with government, businesses, communities and individuals to Shape Future Cities in Queensland and help to create a roadmap over the next six months towards a vital and successful Queensland.”
Work is underway with a steering group that includes the CEOs, chairs or leaders from QSuper; Uniting Care Queensland; the Wagner Group; LGAQ; Dept. Infrastructure, Local Government & Planning; Springfield Land Corporation; Star Entertainment Group; Aged Care Financing Authority; AgForce Queensland; Queensland Chamber of Commerce & Industry; Buckham & Duffy; University of Queensland; and Queensland Resources Council.
Read the Queensland Business Outlook.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 225,000 professionals, all committed to becoming the standard of excellence.
About Deloitte Australia
In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms, and winner of both the Australian Financial Review/CFO Audit Firm of the Year and Accounting Firm of the Year awards 2013, Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit Deloitte’s web site at www.deloitte.com.au.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited © 2016 Deloitte Touche Tohmatsu