As an announcement about the date of the Queensland election looms, a new report showed the state had the nation's second-strongest economic growth last quarter.
Commsec today released its State of the States report, which assessed economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements.
It found that Queensland had the second strongest economic growth, up by 19 per cent above its decade average.
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Western Australia came in first.
Nevertheless, when looking at all eight indicators, Queensland was the biggest overall improver, rising from one of the worst last quarter to the middle of the rankings this quarter.
CommSec chief economist Craig James said the performance was underpinned by the mining and engineering industries as well as reconstruction after last year's summer of natural disasters.
"The challenge ahead for Queensland is to generate higher levels of housing construction where it lags the other states and territories," Mr James said.
Although the state performed strongly in construction activity and business investment, it was falling behind when it came to the number of new dwellings starts, down by 28.5 per cent on its decade average, and housing finance, with commitments down by 4.7 per cent.
Mr James said the $10,000 state government building boost could help improve future housing performance.
Treasurer Andrew Fraser said that's exactly why the Bligh government has extended the Building Boost to April 30.
With the state election around the corner, Mr Fraser called on opposition leader Campbell Newman to make the same promise.
"As the housing sector, still hung over from the GFC and tough leading conditions, catches up with the rest of the economy, the $10,000 Building Boost is playing an integral role in stimulating activity," he said in a statement.
"We know [opposition treasurer] Tim Nicholls opposes the extension which can only mean Mr Newman is backing his politically focused treasury spokesperson over the good of the housing industry."
Mr Nicholls said a Liberal National Party government would reinstate the $7000 stamp duty concession to stimulate the housing market.
He said the housing industry would come under more pressure because of federal Labor's carbon tax.
"The problems afflicting our housing industry are only going to get worse under the carbon tax," he said in a statement.
"With our housing industry in such dire straits, the last thing it needs is more and higher Labor taxes and charges."
Read more: http://www.brisbanetimes.com.au/queensland/blockbuster-economic-growth-in-queensland-20120123-1qcpt.html#ixzz1lAbsI0fy