Commonwealth Bank's quarterly State of the States report has identified Queensland as the fifth-ranked economy in Australia. It is currently ranked higher than ACT (sixth), South Australia (seventh) and Tasmania (eighth).
The report compares historical data from the last decade with contemporary information to identify patterns and changes. For instance, Queensland's economic activity is 10 per cent higher than the decade average, while New South Wales was up 10.8 per cent.
Queensland's economic activity is 10 per cent higher than the decade average
Although the state of Queensland's economy seems to be stagnating, business growth is on the horizon, with government efforts being made to remedy this. Remember, when planning for growth, you will need the expertise of a quality commercial lawyer to guide you through the legal obstacles.
State of Queensland's economy
Although Queensland has kept its fifth position since last quarter, the report makes clear that it is now part of a third grouping of economies. The top group is comprised of Australia's best performing economies: New South Wales and Victoria.
Worryingly, Queensland's economic growth is down 0.2 per cent compared to last year which has led to it slipping into the third tier of Australia's economies.
Although Queensland's economic indicators are perhaps not yet "dangerously low", they are less-than-ideal for the Australia's third most populous state.
According to the Brisbane Times, Deputy Premier Jackie Trad said that the 2015 Commsec report identified some "disappointing features".
"You need to plan for infrastructure to spend on new infrastructure," she said.
Queensland government response
In a draft plan released in October, the Queensland government outlined how it will manage fixture growth and develop infrastructure projects.
Ms Trad said that the draft State Infrastructure Plan identified a new approach to planning infrastructure projects that balanced fiscal responsibility, longevity and private sector innovation.
"The plan is also a blueprint to prioritise and deliver projects that foster economic growth and promote community wellbeing across the state."
The draft plan prioritises five objectives for future investment.
- Improving South East Queensland's transport system;
- Encouraging the use of technology within an improved and sustainable health care system;
- Working with the energy sector to lower disruptions;
- Better regional connectivity, including improved access to the freight market;
- Improved maintenance of public assets.
The investment initiative should boost the state's ailing economy and improve local communities faith in local and state government, while it could also ensure a new level of confidence for business and industry leaders within Queensland.
With so many government-led investment initiatives, businesses in Brisbane and the rest of Queensland should expect to grow.
If your organisation is currently planning for growth opportunities, get in contact with an experienced team of commercial lawyers today.