Cairns economy outperforms state and nation 2025: Regional economist Peter Faulkner
Cairns’ economy has grown at a faster rate than the state and the nation since Covid, but did the region fluke the performance? A leading economist explains how we can keep it going.
Cairns’ economy has grown at a faster rate than the state and the nation since Covid, with timely investments in the region’s infrastructure before the pandemic now paying dividends.
Leading regional economist Pete Faulkner of Conus Business Consultancy Services will present an end-of-year economic analysis alongside Australian Institute of Company Directors’ Mark Thirwell, at an Advance Cairns “deep dive” event on Monday.
Mr Faulkner said among the varying factors behind the sudden five-year gross regional product increase was the boost of the “knowledge economy,” moving into town.
He said essentially this was made up of professionals working remotely, who had relocated north during lockdowns, and now they’re output was helping prop up the region’s GRP.
Asked whether the Far North had “fluked” its way to prosperity during Covid, Mr Faulkner said investments into the region’s social infrastructure needed to be credited.
“You could say Covid was out of our control and therefore all these people who moved here to work remotely were handed on a platter, but that’s not the full story.
“They needed assurances like housing, good commutes, a good airport and hospital, schools and culture and hospitality.”
In the years leading into 2020, projects boosting Cairns’ cultural offerings either completed, under construction or planning included the CPAC upgrade, the conversion of the old Courthouse to an arts hub, the Munro Martin Parklands upgrade and the Esplanade Dining Precinct as well as early concepts for the now upgraded Convention Centre.
Mr Faulkner said in the decade leading into 2020, the value of Australia and Queensland’s economic output grew by about 25 per cent. In that same period, the Cairns SA4 region growth “went no where.”
“Now in the five years since Covid, the nation and the state’s product has grown at about 15 per cent, and the Cairns SA4 region has matched that. However, the Cairns LGA has grown faster than the state and nation.”
Mr Faulkner said while industries such as defence, health, education and tourism and aviation ought to be credited for their contribution towards the region’s rapidly growing GRP, the sudden increase in population post-pandemic was a critical factor, but also an opportunity.
“How do we keep the growth going – well that’s a really good question.
“Yes you have to keep investing in essentials like housing and roads infrastructure, hospitals, education, but the number one thing people in that work from home ‘knowledge economy’ need is good telecommunications, and reliable energy.
“And then, they want culture – and Cairns has come a long way in that space from all the shows to hospitality.
“So the industries we currently have – we need to continue to invest and lean in to and keep generating real skills.
“But yes, there’s an opportunity there to market ourselves, and set ourselves up as a liveable place for the knowledge economy.”
Mr Faulkner’s update comes as the state government locked in its Regional Jobs Committees for antother two years, with Cairns Chamber of Commerce elected to lead the local force.
Chamber chief executive Patricia O’Neil said the greatest threat to the region’s productivity was workforce shortages.
“Over the last couple of years the committee has indentified the industry sectors that are most in need, but more importantly, the ones that are really driving our economy.
“So the biggest one we’re looking at is health care and social care - we’re an ageing population and we need skilled people in that scope and be generating our own so we’re not so reliant on migrant skills.”
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Originally published as Cairns economy outperforms state and nation 2025: Regional economist Peter Faulkner
