The index, to March 31, found that Queensland was accounting for a larger portion of Australia’s output and was attracting increased investment with more listed companies establishing in the state.

The value of the index of 166 companies grew by 3.5 per cent in the quarter to $101.6 billion and it is now more than five times the initial value of the index in 2002.

Deloitte said the increase was supported by a reduced level of loan deferrals and positive announcements in the state’s finance sector.

There had also been a recovery in travel and entertainment during the quarter as restrictions were eased.

Among the 64 mergers and acquisitions during the quarter was the investment in Culture Kings by aka brands. Maropost also took over Neto E-commerce Solutions for $60 million, iCollege bought RedHill Education for $73 million and GlobalX was bought by Dye & Durham for $170 million.

“Queensland is well and truly into its recovery phase following the onset of the COVID-19 pandemic and there’s cause for cautious optimism,” Deloitte said.

It said the expansion of employment in Queensland from a year ago was a significant factor in its growth. About 30,000 jobs were added and unemployment had fallen by the most of all the states. However, its traditional high levels of unemployment were above the national average.

Consumer confidence was high in Queensland and business confidence has followed suit.

“There’s almost $50 billion in Government funding set to be invested in engineering and commercial projects in coming years and more tha double that from projects in various stages of planning,” Deloitte said.

“Queensland’s relative attractiveness has led to the highest net interstate migration of any Australian state, beating out NSW and Victoria.”

However, it said there were issues for the state relating to the continued closure of borders and China’s trade stance.

“So the Sunshine State isn’t out of the woods yet. Tensions with China, the lack of international tourists, the end of key government support programs and the possibility of outbreaks all pose real risks for the state. Navigating these challenges will be key to Queensland’s success in the short term.”

The top movers in market value in the March quarter were Bank of Queensland, Domino’s and Novonix.

Since the index was started in 2002, Queensland’s share of Australia’s output has grown from 17.2 per cent to 18.7 per cent.