Yesterday’s new private sector capital expenditure data from the ABS shows the Queensland economy is in excellent health and will easily reach Queensland Treasury’s forecasts of economic growth of 4.25% and a 35% pick up in business investment in 2011-12. Indeed, business investment grew by 65% over calendar year 2011 (in nominal terms). The increase in mining-related capital expenditure is extraordinary:

David Uren has the national story in the Australian today (Mining crowds out economy with surge in investment):

THE gulf between the mining industry and the rest of the country is widening, with the resource sector planning an extraordinary surge in investment next year while all other business spending is at a standstill.

The crowding out is mainly impacting NSW and Victoria, although our tourism industry is of course suffering from the high dollar, and some parts of Queensland such as the Far North and Gold Coast remain sluggish.