Reasons to be optimistic Qld will cope with shock from mining investment decline

BIS Shrapnel’s new report on the mining industry appears to pick up the points made at the Energy Skills Queensland conference I attended last week regarding how gas will boom, but the outlook for minerals is much less optimistic (More CSG-LNG jobs than previously forecast, but minerals job vacancies have plummeted). In the Brisbane Times coverage of the BIS Shrapnel report (Mining forecast predicts big winners and big losers), BIS Shrapnel’s Arian Hart is reported as saying:

“Queensland wins in a way, through the strong expansion of [liquefied natural gas] production over the next five years. On the other hand, Queensland is also facing the brunt of the biggest declines of investment.

“The Queensland economy is going to face a shock over the next five years as it deals with that.”

I’m reasonably confident Queensland will cope well with the shock, particularly given there is growing evidence of a recovery in the broader Queensland economy, based on encouraging data on employment, retail trade and building approvals released in the last couple of weeks (see for example the Queensland Treasury’s labour force information brief from last week).

Earlier related posts include:

Qld’s economic future bright if we look beyond short-term

Qld Treasurer rightly rejects pessimism about mining industry

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