Australian National Accounts data released by the Australian Bureau of Statistics showed that Australia's gross domestic product grew by 0.7% over the June 2021 quarter resulting in an annual economic growth rate of 1.4% for the 2020-21 financial year.
Queensland State Final Demand (SFD), which is equivalent to gross state product excluding net international trade and thus can be considered as the domestic part of the economy, grew by 2% over the June quarter posting a total of $376.627 billion for the 2020-21 financial year.
Over the financial year, Queensland final demand grew by 4.1% compared to 2.9% in New South Wales and -0.8% in Victoria and at a similar rate to most other states.
Looking at the changes in the various components over the year reveals that household spending increased most substantially by $10.420 billion (+5.2%) over the year as restrictions eased and domestic tourism picked up across the state.
Across the households consumption expenditure component net interstate spending for Queensland fell by -$1.831 billion (-75.3%) giving a positive change in net interstate expenditure for the year, spending on health increased by $1.839 billion (12.6%), while the largest increase was in recreation and culture which increased by $2.219 billion (10.9%).
Offsetting these increases, spending on transport substantially fell by -$2.247 billion (64.2%) and spending on cigarettes and tobacco fell also by -$343 million (-10%).
It's interesting to note here also that the national savings ratio has dropped to 7.6% in June 2021 which, while remaining relatively elevated, has dropped from a record high of 22% in June last year.
Commonwealth Government spending also grew strongly as expected by $2.6 billion (+8.1%) over the year while spending by state and local governments actually fell by -$263 million (-0.6%).
While the economic value of dwellings picked up from the bubbly residential housing market business investment in the state continued to tumble falling by -$1.982 billion (-4.9%).
This statistic reinforces the fact that the business community continues to lack confidence and is reluctant to invest with non-dwelling construction falling by -$1.679 billion (-9%) and capital expenditures on machinery and equipment falling by -$451 million (-3%) over the year.
Business investment did, however, tick up in the June quarter by 5.7%, when businesses would have been ensuring they made the most of this financial year's instant asset write-off scheme. Anecdotally, others have also suggested that improved supply chain conditions may also have contributed to rise.
The release of the State Accounts is due on the 19th of November, which contains the state gross product estimates for the financial year.