NSW economy leading Australia while Qld slides
THE Queensland and NSW economies are headed in opposite directions, two reports have found.
A CommSec report says NSW remains Australia's top ranked economy, but Queensland has slipped into the nation's "third tier" following the end of the mining boom.
Similarly a Deloitte Access Economics report has found the end of the mining boom has reduced project values in Queensland by nearly one-third.
The quarterly CommSec State of the States report, released yesterday, found NSW's low jobless rate, its population growth, retail trade, dwelling starts and housing finance had helped it remain the top performing state.
Victoria ranked second while the ACT jumped into equal third with the Northern Territory. Western Australia, ranked number one in October 2014, slipped to fifth and Queensland to sixth.
CommSec chief economist Craig James said the Queensland economy was now "entrenched" in the bottom tier of state economies alongside South Australia and Tasmania.
A Deloitte Access Economics report, to be released today, has found Queensland and Western Australia are still suffering from the end of the boom in resources.
DAE Investment Monitor December 2015 says the value of planned and definite projects has dropped 30% in Queensland but has risen by about 18% in NSW.
The report found dropping commodity prices was having a "dramatic impact".
Despite this the Deloitte report said construction in the tourism sector, especially in Queensland, was booming.
"Three Queensland projects - the Aquis resort near Cairns, the Airlie Beach resort and the Great Keppel Island resort redevelopment - make up $15.5 billion of the $19 billion of work presently in the pipeline," the report said.
"The increased demand from Chinese tourists has seen increased spending per trip and there is greater demand for casino gambling venues and services."