Deloitte: Queensland Set to Overtake All States in Economic Growth

Speaking at an international investor roadshow, Treasurer Curtis Pitt agrees with Deloitte’s assessment of Queensland’s economy for the upcoming years, citing tourism, agriculture, housing and growing LNG exports as major strengths of the Sunshine State.

Deloitte’s Queensland Business outlook for September predicts Queensland to outperform all other states in economic growth for the next two years. Forecasts show that Queensland is set to record a 4.5% economic growth this fiscal year, and 4.0% in 2016 – 17.

Deloitte points out Queensland’s diverse economy as its major strength, as it has established industries in agribusiness, education, tourism and gas.

International visits are set to increase by 4.9% over the next three years.

Read more about this on the Australian Property Investor website.

SQM Research: Interest Rate Cuts A Certainty

The official cash rate is currently at record low levels and has remained at 2.5% since 2013. Since then, more market analysts are convinced that interest rate cuts are ahead for 2015.

SQM Research recently forecasted interest rate cuts as a “dead certainty” if the Australian Prudential Regulation Authority pushes forward with their lending restriction plans. 2 of the big 4 banks, Westpac and NAB have also forecasted a rate cut for 2015, with the official cash rate dropping at least 2% this year.

The underperforming economy has been pointed out as a major factor in the rate reduction. It is expected that rate cuts as early as April will help boost the housing market.

Read more about this on the Adviser website.

The following two tabs change content below.

Are Interest Rate Cuts Ahead For 2015?

The RBA is expected to go through the last meeting of the year with no surprises, as it is expected that the official cash rate will remain at the historic low of 2.5%. Despite previous predictions of a rate hike in 2015, more people are convinced that rate cuts are ahead, as the economy shows signs of weakness to end the year.

Bank based economists are still convinced that rate hikes are the way to go, but further easing could very well happen – with market economists expecting it to go as low as 2%, as the unemployment rate is predicted to peak to 6.75% in 2015.The country’s trade has also been affected as the price of iron ore has dropped to almost 50% from the start of the year.

Read more about this on the Sydney Morning Herald website.

The following two tabs change content below.