Queensland stands by growth projections
The Queensland State Treasurer Andrew Fraser has announced the State Government remains confident of a return to five per cent growth this financial year, despite the state failing to return to an AAA+ rating.
Ratings agency Fitch issued a statement which affirmed the Queensland Government's rating at AA+ but revised the outlook to 'Negative' from 'Stable'.
The Queensland economy experienced a 0 per cent growth over the 2010-11 financial year, owing to the spate of natural disasters which still hinder much of its growth, particularly in the coal industry.
However, the Queensland Government considers that Fitch has not given adequate weight to the enormous business investment surge forecast for next year at more than 27 per cent and driven by committed and planned LNG investment worth over $60 billion over 10 years.
The State Government criticised the move by Finch to keep the state at a AA+ rating, saying that the ratings agency was viewing the economy through a biased European perspective.
“The Queensland Budget books billions of dollars from our fiscal reform package and continues a march towards surplus. We remain committed to regaining the AAA-credit rating, a task that we've always said is a five-ten year prospect,” Mr Fraser said in a press release.