Queensland’s economy is recovering from the floods and Cyclone Yasi which hit the state earlier this year, according to Queensland Treasurer, Andrew Fraser.

The statement comes after the release of the Australian Bureau of Statistics’ National Accounts data showed Queensland leading the pack for economic activity for the June 2011 quarter.

"The figures show a Queensland economy that's recovering strongly from the floods and Cyclone Yasi," Mr Fraser said.

"We led the nation with growth at 3.5% for the quarter, ahead of all other states and territories.

"The nation's economy grew by 1.2% in the quarter, with investment in our state helping drive a new growth path for the nation.

"The business investment surge is boosting investment in machinery equipment, in construction work and in engineering.

"The natural disasters made for a tough first quarter, but the recovery and reconstruction process is in full swing, driving increased activity in the Queensland economy.

"Of course, the headline seasonally-adjusted June result is heightened because of the massive hit our economy took in the March quarter.

"But have no doubt, it is still a clear sign that the fundamentals of Queensland's economy are strong and our prospects are bright."

In trends terms, Queensland's result (1.8%) came in behind only Western Australia, who recorded 2.3%.