North Queensland economy grows strongly as resources, tourism, and defence convergeUpdated

The North Queensland economy grew 4.8 per cent in real terms in the past financial year, its strongest performance in eight years, as elevated copper and cobalt prices from the Mount Isa mines, record cruise ship arrivals at the Port of Townsville, and defence construction spending combined to deliver broad-based growth across the region.

Queensland Treasury figures show gross regional product for the North and North West Queensland region reached $22.4 billion, driven by a 14 per cent increase in mining royalties from the base metals sector and an 18 per cent increase in tourism expenditure as the region attracted domestic visitors from southern Australia seeking winter sun experiences and reef access without the crowding increasingly associated with Cairns.

The Townsville Chamber of Commerce reported the lowest business confidence volatility in 12 years among its membership, reflecting the diversity of the growth sources and reduced dependence on any single commodity cycle. "Ten years ago, when copper prices fell, Townsville fell. Today we have defence, we have tourism, we have health, we have agriculture — copper is still important but we are not hostage to it," said Chamber president Tamara O'Shea.

Employment growth of 5,200 positions over the year brought the North Queensland unemployment rate to 4.1 per cent, its lowest since the resources boom peak, with particular strength in construction, healthcare, and accommodation and food services. Wages growth of 5.3 per cent outpaced the national average for the third consecutive year.

The Townsville Enterprise economic outlook for the coming year is for continued growth at 4-5 per cent, with defence construction reaching its peak expenditure level and tourist accommodation investments beginning to come online.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.