QUEENSLAND NEEDS TO SNAP OUT OF IT: DELOITTE
Written on the 15 March 2016
QUEENSLAND has been urged to snap out of the slump mentality and capitalise on the investment legacy created by the now defunct resources boom.
Deloitte Access Economics' latest Queensland Business Outlook report says instead of looking at the boom as if it is a hole that needs to be filled, the state should be focusing on its traditional economic drivers which are currently experiencing solid recovery.
"As we place export growth firmly on the watch-and-wait list, it is time for Queensland to stop looking back and start exploiting the positives," says Queensland Deloitte Access partner Mark Ingham.
"The real opportunities for the Sunshine State are in our staples - housing construction, tourism, international education and agriculture. All are expected to get a kick along from the lower Aussie dollar.
"Low interest rates will also continue to boost Queensland's most volatile sector, housing construction, which has experienced an 11 per cent increase in approvals over the past year."
Deloitte says housing construction, including a surge in renovation activity, will 'place a floor under the shopping stamina of families'.
"Tourism is also growing as a result of lower exchange rates, which is expected to stimulate the construction of new hotels and associated tourist infrastructure," says Ingham.
Deloitte says tourism is expected to drive growth over the next five years, aided by the Aussie dollar depreciating 27 per cent against the US dollar since last September.
The exchange rate coupled with the recently revised Australia-China Air Services agreement will boost the total allowable capacity of Chinese passengers to Australian gateway cities by about 50 per cent by October.
Queensland international tourist arrivals are expected to grow at a rate of 5.7 per cent annually over Deloitte's five-year forecast. The growth is expected to flow on to retail spending.
Deloitte says that while wage growth will remain weak in the near future, it also will help stabilise the jobless rate around 6 per cent.