Overall the state of Queensland is tracking well economically even after the devastating effects of Cyclone Debbie, reports the Queensland Government in the quarterly ‘Economic Buzz’.

The Queensland economy has grown by 2.5% in 2016-2017 according to the latest state budget, with the overall growth for the country up by 1.75%. National Australia Bank’s Monthly Business Survey recorded one of the highest scores for any state economy for the same period. 

Trade Data

Trade data from the Australian Bureau of Statistics shows Queensland’s exports in goods sold overseas are booming with a 37.7% increase in the last financial year, with an overall increase for Australia at 19.5%. For the 12 months, the total value of these exports was a record $65.9 billion.

Biofutures

The State Government announced a new Biofutures Acceleration Program (BAP) where five new or existing biorefineries benefited to the tune of $4 million. It is anticipated these investments could create around 330 jobs.

Minister Dr Anthony Lynham announced Queensland has a vision for a $1 billion biofutures industry by 2026. More biofutures news from the financial year included a new $50 million integrated biorefinery for Mackay, and the update that the North Queensland Bio-Energy ‘s $640 million biorefinery is moving closer to fruition.

Dreamliner Base

As discussed last week in the blog, the announcement of the Qantas Dreamliner base at Brisbane Airport will create around 470 jobs. The investment from Qantas is estimated at around $1 billion.

Military Vehicle Manufacturing

Queensland has been selected by Rheinmetall Defence Australia as the preferred location in Australia for their facility for military vehicle manufacturing. If the company is successful is securing the necessary funding (one of two companies in the running), it is expected the project will deliver 225 combat reconnaissance vehicles (CRV) for the Australian Army. The project will contribute more than $1 billion to the state economy in the first 10 years of operation and generate at least 450 full-time equivalent positons.

Commonwealth Games

With all competition venues now complete, the state is well prepared for the 2018 games. The $320 million investment in community and sporting infrastructure has witnessed approx. 1000 jobs during the design and construction phase, with a total of 10,400 people working over various locations.

Further statistics include 40% of construction contracts awarded to local contractors and a further 54% allocated to South East Queensland businesses.

Queens Wharf

As mentioned in previous blogs work on the $3 billion Queens Wharf development is truly underway with the demolition of the former 80 George St & Neville Bonner building and up to 150 workers on site.

Regional Queensland Infrastructure

The next stage of the Building our Regions (BoR) program will support 65 infrastructure programs with $70.3 million to be awarded. It is anticipated these projects will create 438 regional Queensland jobs.

New roadmap

The Queensland Mining Equipment, Technology and Services (METS) 10-Year Roadmap and Action Plan contributes to the state’s $7 billion section, and is set to create 3,000 extra jobs.

The biomedical sector

The sector is set to see a boost, with a $4 million action plan which will deliver around 3,000 new jobs.                 

Nathan Dam

If the plan progresses for the Nathan Dam and Pipelines project (gained approval subject to conditions in July this year), it will generate a $1.2 billion investment for the state economy and create 525 jobs. The proposal includes a 888,000 megalitre dam and a pipeline in Central Queensland, north of Dalby.

Interest rates

In other economic news from the Reserve Bank this week, interest rates were again left on hold at 1.5%. The monthly report from St George Economics indicated the RBA appears to be more confident of improvement in business investment, consumer spending in Australia, and the labour market. St George anticipates the cash rate will stay steady with a possible rate hike next year.