What the economic bounce-back reveals about Queenslanders

The first economic figures showing the impact of Omicron on the state are out – and what it says about how Queenslanders handled the new variant is revealing.

Queenslanders spent up big on booze, clothes and going out to cafes and restaurants in the lead up to borders opening and Christmas, but the state’s economy remained flat as the Covid-19 Omicron variant loomed and supply chain shortages bit.

The national economy surged 3.4 per cent, on the back of NSW and Victoria coming out of lockdown, but in Queensland it remained completely flat with no growth had fall.

Delays to home building and renovations caused by supply shortages were among the factors constraining the state’s growth, while there was also a fall in coal exports.

Treasurer Josh Frydenberg. Picture: NCA NewsWire / Gary Ramage

But Treasurer Josh Frydenberg seized on the figures to spruik the “enormous strength and resilience” of the nation’s economy in the face of the ongoing and changing virus.

“Omicron has not derailed our economy. Omicron has not derailed our recovery,” he said.

“The Australian economy will continue to be tested. But if we stick to our economic plan Australians can be optimistic about their economic future.”

The data, released by the Australian Bureau of Statistics, covered up to the end of December, including the opening of the state’s borders and the onset of the Omicron variant, but does not include the supply chain issues which saw supermarket shelves bare at times at the start of January.

Opposition treasury spokesman Jim Chalmers said the national economy was bouncing back was “welcome but unsurprising” as it was coming from a low base.

“The economy and the recovery would be much stronger today if ordinary Australians weren’t paying the price for this government’s incompetence,” Mr Chalmers said.

Opposition treasury spokesman Jim Chalmers. Picture: NCA NewsWire / John Gass

“Skyrocketing costs of living and falling real wages shouldn’t be the thanks Australians get for the sacrifices they made during the pandemic.”

In the three months to the end of December, Queenslanders spent $1.3 billion on alcohol, up eight per cent on the previous quarter.

Reflecting the lack of lockdowns, Queenslanders were out and about with spending on recreation and culture up 20 per cent to $6.6 billion and up at restaurants, hotels and cafes by 15 per cent to $3.8 billion.

There was a 12 per cent drop in spending on new cars, which the ABS attributed to supply shortages, while coal exports fell 4.9 per cent nationally as heavy rainfall and labour constraints affected mine operations.