Qld Budget 2017: Hopes pinned on coal price staying high
BETTER days are ahead if Queensland can get back on the coal wagon.
The 2017 state budget found Queensland's economic growth could push ahead of the national average should royalty prices stay high and major projects like Adani's controversial Carmichael coal mine progress.
But the same budget papers admitted a sustained high coal price was unlikely.
"If the improvement in commodity prices is sustained and large projects such as Adani's Carmichael coal mine proceed, then investment in resources and exports will strengthen, potentially boosting Queensland's economic growth rates and state revenues," the budget said.
"Higher commodity prices this year, particularly for coal, have seen an increase in the terms of trade which may provide some support for growth in household incomes and spending in 2016-17. This effect is likely to be relatively mild and transitory, as markets adjust following temporary spikes in coal prices."
Instead the budget is counting on LNG to drive Queensland's exports in the near future despite exporters limiting output due to low global prices.
"Despite the lower expected volumes, the ramp-up profile of the projects still sees LNG exports grow substantially in year-average terms in 2016-17 and, to a lesser degree, in 2017-18," the budget said.