Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Thursday, 9 February 2017

Bonza news for Queensland as commodity exports exceed $1bn per week

Queensland rebound

The state final demand figures showed how Queensland went through a very tough period in 2014 and 2015 as the resources construction boom faded away.

Western Australia is still going through this contractionary phase in 2017.

As I looked at here, however, a boost to Queensland's coal and LNG exports has seen the state's trade balance surge into surplus.

Meanwhile the contraction in resources construction has run its course in the sunshine state. 

Further to this, the Queensland Treasury has released figures which show that commodity exports surged by $3.9 billion in 2016 to more than $52 billion, or $1 billion per week, largely due to a rebound in coal prices and record LNG export volumes as the new projects ramp up. 

In fact the state level figures for Queensland are a bit understated for recent years, with the statistics not being fully disclosed for some commodities, which are being treated as confidential. 

Throw in the impact of the lower dollar which has swelled the Queensland tourism sector, and it's a decent outlook for 2017. 

No surprises, then, that net interstate migration into Queensland has been rising since the last quarter of calendar 2014. 

In annualised terms internal migration to Queensland has more than doubled to exceed 11,500.

One of the biggest challenges for Queensland is that it has a looming glut of new apartments in inner city Brisbane which will need filling, while the ensuing residential construction downturn will also be a tough period to navigate.