THE boisterous Queensland economy is forecast to grow faster than those of many industrialised national economies - such as Japan, Germany, the UK and the US -
in 2007-08.

Deputy Premier and Treasurer Anna Bligh predicts the economy will strengthen to an above-average rate of 5.5 per cent by the end of the current financial year and to exceed growth nationally for the 11th successive year.

Ms Bligh's key economic forecasts, comparing Queensland and the nation in 2007-08 include:

Ms Bligh says investment by the business and public sector combined is forecast to reach 25 per cent of gross State product in 2007-08, compared with 15 per cent five years earlier - adding significantly to the State's productive capacity.

Ms Bligh says estimates are for employment to grow at an above-average rate of 4.75 per cent in 2006-'07 before it returns to its long-run average of three per cent growth in 2007-'08.

This represents the creation of more than 150,000 jobs in two years.

"The State's year-average unemployment rate is estimated to fall to a 33-year low of four per cent in 2006-'07 and remain steady in 2007-08, representing a rate well below that nationally," she says.

"After surpassing four million persons in December 2005, Queensland's population is forecast to continue to grow at a solid rate of two per cent per annum in 2006-2007 and 2007-'08. This translates into a net addition of 150,000 persons - or nearly 1500 persons per week over the two years."

Ms Bligh says traditional factors such as the State's strong economic growth, low cost of living and preferable lifestyle are expected to maintain high levels of net interstate migration.