Queensland Treasurer Andrew Fraser is absolutely correct to dismiss the CommSec report claiming the Queensland economy is currently the worst performing in the country (well, equal last with NSW). Mr Fraser observed (see Sunshine State economy ranks last):
“I don’t agree with the methodology that CommSec uses. If you look at what the Australian Bureau of Statistics has said in the last couple of months, we are number one for generating jobs. We remain the number one destination for people moving within Australia.”
The CommSec report graded States based on how they’ve performed lately compared with their average performance over the last decade. As the Brisbane Times (Economic gloom in the Sunshine State) explains:
The survey ranks states and territories by their economic performance based on eight key indicators: economic growth, retail spending, equipment investment, unemployment, completed construction work, population growth, housing finance and new housing construction. It compares quarterly results with each state and territory’s decade average, or what is considered to be “normal” levels of activity.
So Queensland gets penalised because our current performance looks ordinary compared with our stellar performance over the majority of the last decade. Using this methodology to rank the States gives you a silly answer to a silly question.