Queensland Treasurer Tim Nicholls
Queensland Treasurer Tim Nicholls

Queensland economy tipped to grow by 6% in 2015-2016

FOR the second consecutive year the Queensland economy has grown on the back of strong investment in the resources sector across regional centres.

The mid-year fiscal and economic review revealed the economy grew 3.6% last financial year with forecasts predicting further growth of 3% during the current financial year rising to 6% in 2015-16.

Queensland Treasurer Tim Nicholls said on Wednesday the State Government had reigned in spending.

"Careful economic management means the budget position is now fairly stable," he said.

"We have kept a tight reign on expenses with growth in general government expenses expected to average 3% per annum through to 2016-17."

However, Mr Nicholls said Queensland was still bearing a heavy debt burden inherited from the previous Labor government.

"In order to invest in new infrastructure and better services in coming years we must address the debt problem and make even greater improvements than we have already accomplished," he said.

"Debt in 2013-14 is now forecast to be $76.97 billion which is down $1.16 billion than forecasted in the June budget and $5.32 billion better than the Commission of Audit predicted.

"In 2014 we will continue the conversation with Queenslanders about the best way forward so we can fix Labor's debt problem and secure the state's financial future."