The spirits of Brisbane western suburbs residents and office workers were no doubt lifted when they first saw the sign announcing that the McDonalds on Milton Rd, next to the still closed BP and Officeworks, is reopening on 28 February. With a number of prominent businesses still closed due to the flood, it’s probably not surprising that there is a perception among people, both inside and outside the Brisbane metro area, that the city has not yet recovered.
With people unsure about whether their favourite businesses have reopened, they decide to put off a visit until another time. Some business owners believe that this perception, in part, is responsible for recent sluggishness in Brisbane’s economy, particularly in the hospitality sector, as reported in the Brisbane Times:
This sluggishness will only be temporary. For all but the most seriously affected, our vivid memories of the flood will fade, and we will get out and about again, and, in particular, back to our old favourite riverside restaurants and cafes. Furthermore, with a number of head offices of up-and-coming resource companies (e.g. Aston Resources and Macarthur Coal), Brisbane will no doubt share in the new riches from the resources boom.
New ABS data released today confirm the large pipeline of business capital investment ($135bn in the next financial year) that is expected in Australia, much of it in Queensland resource projects:
This followed news that the Commonwealth Environment Minister Tony Burke had cleared the $35bn Australia Pacific LNG project:
While the sluggishness in Brisbane’s economy may remain for another few months or so, the news coming out of the resources sector is so good that we can expect Brisbane to be booming again by this time next year, if not earlier.