Queensland has the fourth strongest economy in the nation but is being held back by its housing sector and slower-than-normal population growth.
Western Australia again had the strongest performing economy, according to CommSec’s State of the States report for the December quarter.
Queensland came in fourth, but largely because the ACT slipped down the leader-board rather than Queensland improving some of its key indicators.
The state’s economic growth rate came in behind a surging Northern Territory and Western Australia, up 18.6 per cent on the decade average level of output.
Treasurer Tim Nicholls says the state is on the cusp of strong growth.
To excel, the state will have to either cut services, increase taxes or sell up to $32 billion worth of assets, the government says.
“To realise that growth we will have to make some strong choices to deal with the $80 billion debt Labor left behind,” Mr Nicholls said on Monday.
Queensland had the third strongest result for retail spending, coming in 13.7 per cent above decade averages.
Mining investment still remained relatively strong across the resource states.
Equipment investment in Queensland is now 17.5 per cent above decade-average levels, with the state coming in behind the Northern Territory.
The outlook for housing construction is strengthening across the nation, underpinned by low interest rates and strong demand by investors.
Housing approvals increase by just 0.8 per cent in Queensland, the third worst rate in the nation.
However, encouragingly starts were 23.7 per cent higher than a year ago.
Population growth in Queensland is well bellow it’s decade average, down 17.6 per cent.
The state comes in seventh for population growth, followed only by Tasmania.