Queensland economy ranked best in nation by CommSec State of States quarterly report

Queensland has the best performing economy in the nation amid a population boom, stellar jobs market and strong overseas demand for its energy resources.

Queensland has the best performing economy in the nation amid a population boom, stellar jobs market and strong overseas demand for its energy resources.

The CommSec State of States quarterly report, which gauges the economic “momentum” of each jurisdiction, ranked Queensland tops for the first time in the 13-year history of the publication.

But the report, released on Monday, also warned the strength of economies across jurisdictions moving forward will depend on how the housing and job markets hold up against skyrocketing interest rates.

CommSec chief economist Craig James said Queensland’s economy was being supported by “solid mining, energy and tourism sectors” as well as strong internal migration.

The latest available data from the Australian Bureau of Statistics revealed the state’s population increased by 104,400 people over the year to June 2022, growth of 2 per cent which surpassed all other jurisdictions and was the highest for Queensland since 2013.

“Queensland has benefited from an inflow of migrants since the pandemic — especially people moving from NSW and Victoria,” the CommSec report stated.

“As a result, home loans and retail spending have been boosted together with economic activity more generally.”

Strong internal migration has boosted Queensland’s housing industry. Picture: Linda Higginson

Queensland’s retail spending is 16.4 per cent above the average for the decade, with the state second behind only Victoria.

According to the CommSec report Queensland also had the strongest job market in the country, with trend unemployment at just 3.6 per cent — 39.4 per cent below the decade average.

The state’s economy grew 21.4 per cent over the year, the fastest of any jurisdiction, while Western Australia trumped on economic growth over the decade.

“The diversification of its economy has traditionally prevented Queensland from taking top spot in the economic rankings,” Mr James said.

“That is, strength in some sections of the economy had been offset by weaknesses in others.

But Queensland is currently supported by solid mining, energy and tourism sectors as well as solid internal migration.

On vehicle sales, an extra measure included in the report but not used to determine rankings, Queensland was also on top with new sales up 4 per cent on the decade average.

Mr James said future economic performance would depend on the housing and jobs market at the time of higher interest rates, with the report noting the reopening of China after Covid-19 shutdowns would be important for resources and tourism-focused states.

A Palaszczuk government spokesman, reacting to the report, lauded the state’s “nation-leading economic recovery plan” for “delivering good jobs, better services and a great lifestyle for Queenslanders”

But Opposition Treasury spokesman David Janetzki criticised the government for “rubbishing” the report for years then “desperately clinging to it”.

“(All) while refusing to acknowledge the lived experience of Queenslanders struggling to put a roof over their heads, protect their homes and see a doctor,” he said.