Economy

Queensland Exports in Resources and Manufactures Falter as Agricultural Goods Lift in a Helter-Skelter Fashion

Queensland politicians would be wise to assess the expected earnings from the resources sector before making any rash statements ahead of this month's budget.

One of the more concerning aspects of the trade picture affecting Queensland has been the fall in exports by almost $10 billion for the 2019/20 according to data compiled by the Department of Foreign Affairs

Queensland merchandise exports fell by $10.616 billion (-12.2%) to $76.631 billion over the 2019-20 financial year  with LNG falling by $11.107 billion (-15.9%) to $58.780 billion as the lower oil price continued to place downward pressure on the gas sector.

More concerning, the value of coal exports, which comprised 39.7% of total merchandise exports over the year was by 20% over the same period. Coal royalties account for upwards of 8% of the state's total revenue.

The highlight within the reports has been the outperformance of agricultural exports where substantial increases to exports of beef and other meat (including fresh, chilled and frozen), rising by 15.8% and 10.6%, respectively.

The agriculture story for the state is the thematic likely dominate in the coming decade.