Government Spending Keeps Queensland Growing as Australia’s Economy Expands by 1% in March
The Chamber of Commerce and Industry Queensland (CCIQ) has welcomed the latest national accounts figures revealing the Australian economy grew by 1% in the March quarter and 3.1% over the previous 12 months.
Heightened levels of economic activity in Victoria (+1.9% Q/q) and New South Wales (+0.7% Q/q) bolstered the national accounts data.
Queensland’s state final demand growth of 0.5% for the March quarter was built upon household expenditure and outlays from the state government.
CCIQ Head of Industry, Dan Petrie said that the state economy could be doing better than relying on government spending to continually bolster the Queensland economy.
“Unfortunately this spending growth only exacerbates the more immediate debt challenge facing policymakers and the state’s treasury.
“From a national perspective, it is pleasing to see the economy returning to trend growth.
“However closer to home the data shows that government spending is the key factor in keeping state final demand in positive territory,” Mr Petrie said.
CCIQ’s most recent Pulse survey of business confidence showed pessimists still outrank optimists which have been borne out by today’s national accounts.
“Queensland’s longer-term growth will ultimately come from a sustainable and indeed successful small to medium enterprise sector.
“While the latest headline data is relatively positive it masks a subdued picture facing Queensland’s private sector,” Mr Petrie said.
CCIQ has again reiterated that next week’s State Budget presents an opportunity for the Palaszczuk Government to set a clear economic direction for the state’s business community.
Media and Communications – Economy and Government
Chamber of Commerce and Industry Queensland
Ph No: 07 3192 0120 (Landline)
Media - Direct: 0418 793 967
Dan Petrie -Mobile: 0408 919 767