Black gold and housing boom driving Qld economic recovery

China shot itself in the foot.  It cut off orders for Australian coal when the demand for coal was going through the roof worldwide.  Result:  Blackouts in China and big profits for Australian coal miners

About $60 billion in mining projects are driving the state’s economic engine room right now, the vast bulk related to coal.

Queensland’s exports to China were nearly halved in the past year, but high prices of coal are still driving a strong economic recovery for the state, according to a new report.

It will be revealed in the Deloitte Access Economics investment monitor report to be released today.

There are about $60 billion in mining projects driving the state’s economic engine room at the moment, the vast bulk of which are related to coalmining, it found.

A housing construction boom is also helping to drive growth in the economy.

The report found investment in private housing in Queensland had grown more than 11 per cent and was back above pre-pandemic levels.

But report author and economist Stephen Smith warned the construction boom soon stall due to material and worker shortages looming as a result of complications from the pandemic.

Queensland’s exports fell by about 10 per cent in the 2020-21 financial year, including a 48 per cent drop in goods sent to China.

Beijing’s ban on Australian coal was the driving factor in this, but the report found that rising to record high prices for both thermal and metallurgical coal would lead to a strong recovery for the state’s export sector.


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