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Qld economy on the right track

Qld jobs growth says economy on the right track

Queensland’s reputation as the job-generating capital of the country flies in the face of reports that the state economy compares poorly to other states, Treasurer Andrew Fraser said.

Mr Fraser said the Commsec report used unorthodox methodology to come up with unusual conclusions.

“The facts are that Queensland is number one for job generation and number one for interstate migration,” Mr Fraser said.

“Queensland has generated jobs for 11 straight months. For the last three months, we’ve generated more jobs than any other state.

“That’s not symptomatic of an economy that is struggling.

“In economic growth terms, our economy is predicted to have outpaced the nation in 2009-10 and we are forecast to do the same again in 2010-11.

“Queensland is also the number one destination for interstate migrants. More people move to Queensland from other states than anywhere else – yet Commsec rates us last for population growth.

“That means when it comes to assessing economies, Australians are voting with their feet and coming to Queensland for a better lifestyle and greater economic opportunities.

“I don’t expect you’ll find too many economists who’ll endorse the methodology of the Commsec report. They themselves say there is some “subjectivity associated with the rankings” (page 2), and they admit that the weighting methodology provided to each factor is open to debate.”

Mr Fraser said he welcomed Commsec’s acknowledgment that the state Government had in place the right settings to continue to grow the state economy.

“Our infrastructure program and our low-tax status will encourage further investment, stimulate economic growth and deliver job creation.

“Unfortunately banks are still reticent to lend to potential investors.

“Once the banks unlock that finance, we will see renewed investment in many sectors, including housing and commercial property.”

Mr Fraser said a report released by Access Economics today said Queensland was heading in the right direction, noting that “the next few years should see Queensland start to muscle its way back towards the top of the State growth league ladder”.

It also made the point about financing constraints in the Queensland economy, saying “it is harder to get a loan in the Sunshine State than elsewhere”.