This from the Australian Financial Review, a piece on what is being overlooked "amid the focus on negatives "
(here is a reminder of the negatives ICYMI:
- High household debt
- Weak consumer sentiment weighing on consumption
- Slow wages growth)
OK, from the article:
Australia is on the cusp of the biggest wave of public infrastructure spending in at least three decades
- Research published this week shows almost $100 billion in local, state and federal government spending will hit the economy this year financial alone
- According to a chart presented by Reserve Bank of Australia governor Philip Lowe in a speech in Perth this week, public infrastructure work "yet to be done" will be just under 6 per cent of nominal gross domestic product in 2017
- That figure is set to keep rising ... transport projects alone set to boom for much of the next five years, and peak three years from now in 2020
The full piece is here for more, it's the AFR so it may be gated: Australia's next boom has barely started
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Australian economic growth has been on the slow side, but will be supported by developments such as these (and weighed on by those negatives, of course ... and in the short term watch out for the impact of the falling iron ore price on export earnings). The RBA is forecasting higher economic growth ahead than many private forecasters are, if the Bank is correct then the next move in rate (which will be some way off though) will be up. If those less sanguine private forecasters are correct, though, then next move in rates could well be delayed further.
