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Queensland coal exports a short-term economic relief but 'won't last long'

Coal News - Published on Tue, 15 Oct 2019

Image Source: abc.net.au
Deloitte's latest business outlook report says that coal and gas exports will give Queensland's economy some short term relief from the ravages of drought, flood and fire but it won't last. Lead author and Deloitte Access Economics partner Chris Richardson said that for long-term growth, population is the key. He said "But that’s not to say that Queensland is having an easy trot. While China’s stimulus measures will continue to shore up economic growth and global commodity demand in the short term, it won’t be a silver bullet of sustained and sustainable growth. Rather, Chinese stimulus is best seen as a welcome-but-temporary boost that provides some insulation to weakness ... in the state’s domestic economy and from a horrible drought.”

Natural disasters have been the biggest cost to the economy, with Deloitte estimating the monsoon trough that soaked north and far-north Queensland in January and February cost the state almost AUD 6 billion.

Drought was also predicted to have a long-term impact, because even when it eventually broke, farmers would need time to restock, or might even leave the industry entirely.

But Mr Richardson said the weaker Australian dollar would encourage farmers to continue, with cheaper exports helping farmers reach global demand.

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Posted By : Rabi Wangkhem on Tue, 15 Oct 2019
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