In its Coast to Coast report on the states, Westpac said Queensland households were facing intense pressure from higher costs, particularly in energy, which would be offset by Government subsidies.

There was also a weakness in spending that could be attributed to the way the state was largely untouched by Covid lockdowns, which meant there hadn’t been the “catch-up” demand or revenge spending seen in other states.

Households were also holding back on spending for big-ticket items and renovations, but the recovery in immigration was likely to be a key positive.

“Queensland remains at the front of the pack. Annual population growth of 2.2 per cent (is) above the national average of 1.9 per cent. Underlying this is strength in both net overseas migration and net interstate migration highlighting the clear opportunities to be found in Queensland as headwinds fade.”

However, Westpac has forecast 2.3 per cent growth in the gross state product for Queensland in the 2023-24 year, well above the other states, but well below State Government forecasts of 3 per cent.

Westpac said the states generally had been too optimistic in their forecasts because there was going to be a sharp slowdown in the national economy.

“For the 2023-24 year, Westpac anticipates that the output growth nationally will slow abruptly to a well below trend 0.6 per cent. The view of the states, in aggregate, is that growth will be a relatively resilient 1.9 per cent,” Westpac said.

“If correct, the state budgets are, in aggregate, too optimistic on their economic growth forecasts for the 2023-24 financial year.”

CoreLogic revealed that Brisbane house prices jumped another 1.3 per cent in June lifting the quarterly increase to 3 per cent. For the year, prices were still down 8 per cent. Regional house prices were down just over 4 per cent for the year and rose 1 per cent in June.

CoreLogic said the lack of supply was driving prices. Brisbane’s median price was now $725,000. The median for regional Queensland was $572,000.

The Ipswich Hinterland was the only Greater Brisbane market to record positive growth (0.4 per cent) for the year.

Brisbane rental increases appeared to be moderating and CoreLogic said that was likely to continue.

Roy Morgan also released a report today showing that Australiams were wealthier than they were before Covid, largely because of the increase in house prices over that period.

The value of owner-occupied homes has increased nationally by 43 per cent to almost $6 trillion since Covid hit.

The party appears to be over for the all-important resources sector which has enjoyed more than a year of soaring prices that boosted profits and also helped underwrite the State Budget through a massive royalty intake.

The Resources and Energy Quarterly, produced by the Federal Government, has forecast a drop in resources exports nationally of $70 billion this financial year and another $45 billion fall the following year.

LNG will fall by $24 billion and thermal coal was expected to drop by 50 per cent over the next two years.

Metallurgical coal were expected to increase in volume terms over the next two financial years but prices would moderate. Export values would fall from $60 billion in 2022-23 to $42 billion in 2024-25.

The report said although China was again buying Australian coal, volumes were low and it was possible that export volumes would never recover to the level they were before the bans were imposed.

However, India had $11 billion worth of steel projects and demand for metallurgical coal, used in steel production, would increase.