In recent years, public investment in Australia has dropped amidst fiscal pressures. The economic growth has been weighed on by public investment. However, the focus has shifted to stimulating public backed infrastructure expenditure recently in order to underpin economic growth.
Public sector backed capital expenditure is beginning to bolster as resources investment is expected to continue declining, according to ANZ. Resources investment is expected to drop; however, its drag on the overall growth is likely to fade soon. Infrastructure spending backed by major public sector is likely to boost in 2016, noted ANZ.
Most of the activity will be focused in New South Wales in the beginning. However, Victoria is expected to get a boost from 2018, added ANZ. Australia’s capital expenditure is expected to fall further.
“Investment is forecast to decline to AUD36bn in 2018 from AUD63bn in 2015”, said ANZ.
