Queensland has fast growth, but picture mixed: Commsec

The latest Commsec State of the States report is pointing to Queensland for the fastest economic growth rate across the country, causing Premier Campbell Newman to note that the state is the best to “invest, employ and grow your business”.

With economic growth up 4.2% from this same period in 2013, Queensland’s economy is gearing up to fulfil forecasts that put the state as the fastest growing into 2014/2015 as well.

“Queensland is leading the way in business investment, with spending in the September quarter almost 27 per cent above decade-average levels,” said Newman.

“Meanwhile, improvements in the housing sector and increased retail and tourism spending mean more jobs are being created across the state,” he said.

“Last week's ABS data showed three-quarters of all the jobs created in Australia in the year to December were created in Queensland.”

Massive LNG projects currently in development are being said to underpin this growth, with Acting Treasurer John McVeigh pointing to $60 billion invested in the year to September 2013 quarter.

“The CommSec report has found retail spending in Queensland is up 14.7 per cent on decade average levels as both consumers and businesses continue to show sustained optimism, while tourism is also improving,” said McVeigh.

However, there is still an $80 billion debt overshadowing the state’s finances, which is shackling the ability of the government to fund new services and infrastructure, he said.

Despite this being noted by McVeigh as the area of weakness, the Commsec report points to population growth being the factor of weakness for Queensland.

In New South Wales, the job market is seen as the strength, while economic growth is the factor holding the state back.

In Victoria, a housing pickup is the positive factor, while construction work is seen as a weakness.

Meanwhile, South Australia has construction work listed as a strength with retail spending at a low. Western Australia saw retail spending on top, however dwelling starts were a weakness.

Tasmania’s housing pick up was a strength, however there were “Various” weakness factors. The Northern Territory’s strength remained in economic growth, with home lending letting the territory down. Lastly, the ACT saw population growth as a strength but business investment as a weakness.

Currently, WA remains Australian’s best performing economy, while the ACT, NSW and VIC (equal fifth) have been leapfrogged by NT. In October, WA was also the best performing, quickly seeing other states and territories catching up.

With the slowdown in mining mentioned as having a continuing effect on some regions, it was noted to likely be offset by residential building, with NSW, WA, QLD and ACT expected to benefit most of all from this.

Commsec’s quarterly State of the States report analyses eight key indicators to judge state and territory performance. They look at economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements.