Fitch Ratings’s negative outlook for the Queensland economy would only make sense if the US really does have an economic armageddon following the possible (though unlikely) failure to lift the US Government’s debt ceiling and this depresses the global economy. In this case, Queensland shouldn’t be singled out for a negative outlook.  Fitch’s assessment is totally backward looking and is bizarrely ignoring the large amounts of evidence that there is a big investment boom on its way in the resources sector – for example:

Queensland investment boom on its way

Swan says relax about GDP fall, check out this pipeline

That said, there are grounds for some concern around some of our regions (e.g. Gold Coast, Cairns) that have been adversely impacted by the high Australian dollar, which may climb further in response to possible interest rate increases in response to today’s higher than expected inflation figure (Inflation rate jumps in June quarter). One courageous forecaster is suggesting the dollar could get to $US1.50 (More dollar dazzle to come). This is unlikely, but forecasts of this nature must make many tourism dependent businesses in our coastal regions very worried indeed.