The Australian economy is expected to accelerate on the back of business investment over the next decade.
23 February 2010
Australian economy to accelerate over next decade
The Australian economy will continue to increase over the next two years and have economic growth well into the end of the decade due to business investment, a leading industry research and forecaster company said.
Gross domestic product will rise 2.7 percent in the 12 months through June 2010, 3 percent in fiscal 2011 and 3.8 percent the following two years, the Sydney-based BIS Shrapnel Ltd said.
The Australian economy will also benefit from a surge in house construction and government investment in infrastructure, like schools and roads, will help stoke economic growth, and the mining industry is expected to increase in three to four years.
“We are now well and truly into recovery from what turned out to be a modest downturn,” said BIS Shrapnel economist Richard Robinson.
“Investment, and primarily the construction side of it, is the primary driver of growth in the economy.”