QUEENSLAND is expected to be the fastest growing state economy next financial year, says the latest Deloitte Access Economics Business Outlook report.
The outlook report for December, which isn't available to the media, estimates the economy will grow 3.6 per cent this financial year and next.
This compares favourably with the national economy, which Deloitte says will grow at 2.5 per cent.
Queensland Treasurer Tim Nicholls says key business sectors have reason for optimism.
“The report forecasts Queensland will have the fastest growing retail turnover of all Australian states both this financial year and in 2014-15,” says Nicholls.
“It’s also painting a bright future for the construction industry with strong growth predicted over the next four years.”
In the media version of the report, Deloitte says Queensland has challenges, but also underappreciated growth prospects.
"Queensland is still weighed down by a coal crisis and by State Government cutbacks, but these are becoming less
of a drag, while gas development is boosting the economy, and lower interest and exchange rates help too," it says.
This follows a number of other reports which paint the Queensland economy in a positive light.
“Last week’s CommSec State of the States also put Queensland at the top of the economic growth ladder,” says Nicholls.
“It also found the state is leading the way in business investment, with spending in the September quarter almost 27 per cent above decade-average levels.
“We’ve seen ABS data showing that three-quarters of all the jobs created in Australia in the year to December were created in Queensland.”
Deloitte also predicts inflation will be weak this year, but money will become less cheap in 2015, as government's reign in stimulus packages and interest rates rise.
The Australian Dollar will remain under pressure this year and next, giving some hope to the "slow" sector of Australia's two-speed economy - manufacturing, tourism and retail - which will also be buoyed by rising house and share prices and a slowdown in electricity price rises.
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