Brisbane Club presentation on Qld economy & latest Value of the Census post at the Mandarin

Last Friday, I presented my thoughts on the economic outlook and the recent Queensland state budget at the Brisbane Club. I highlighted the positives (e.g. resource exports, international education) and negatives (e.g. low business confidence and subdued business investment across many sectors) in the Queensland economy, which are combining to deliver only modest growth. You can download my slides via this link:

Qld Economic update 21 June 19

I also noted the state government’s capital works program was expected to contribute to economic growth, as well as to Queensland’s ever-growing state debt. Queensland government capital purchases are  increasing substantially in 2019-20, from $8.9 billion in 2018-19 to a budgeted $10.2 billion (a 15.4% increase). Relative to the size of the state economy, this will be the Palaszczuk government’s highest level of capital works yet, at 2.7% of GSP (see figure below). Note, on current budget projections, it is expected to drop significantly in 2022-23 to 2.0% of GSP, but I expect the government will have found many new projects to invest in by then, so that may not occur. Of course, that probably means total state debt will increase beyond the currently projected $90 billion for 2022-23.

Qld_govt_capital_purchases_19_20

Readers may also be interested in the latest post relating to the Value of the Census project I’m working on with Nicholas Gruen and Matt Balmford from Lateral Economics:

Comparing the Census to alternative data or information: What is the right counterfactual?

This entry was posted in Budget, Labour market, Macroeconomy, Uncategorized and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s