Deloitte Access Economics has forecast that public sector investment in infrastructure will increase by 20% 2020-21 and 13% 2021-22. By comparison, private sector investment in infrastructure is tipped to fall by 2.6% in 2020-21 followed by growth of 12% in 2021-22.
Deloitte says there is currently more than $180 billion worth of public infrastructure projects currently underway nationwide, but this will top $250 billion in 2022:
The boom in infrastructure construction is projected by Deloitte to add 3 percentage points to real GDP growth over the next two financial years, which would be roughly double the historic contribution from investment.
NSW is leading the boom with $206 billion worth of planned and definite projects, compared to Victoria’s $128 billion.
The infrastructure boom is obviously great news for the Australian economy and living standards. Following 15 years of extreme immigration, Australia experienced a chronic infrastructure deficit with congestion and crush-loading evident across all forms of economic and social infrastructure.
But with Australia’s international border now closed, and immigration having turned negative, Australia has a unique opportunity to catch up on years of infrastructure spending, which will ultimately support jobs, growth and living standards going forward.