The Reserve Bank predicts that this year Australia's economy will grow by about 2.75 percent and next year by 3 percent, reflecting a positive outlook for the country given the bushfires and coronavirus.
Reserve
Bank Governor Philip Lowe says dropping unemployment by
rebuilding would counterbalance the harmful effects of the bushfires
and the virus. He says the economic hit from the catastrophic
bushfire season and the virus threat that unfolds will only weigh
temporarily on domestic growth.
The Bank's outlook was for demand growth to accelerate slowly, accompanied by moderate growth in disposable household income and housing market recovery. In most capital cities and areas of regional Australia, increases for housing prices had picked up in recent months. Prices had increased very strongly in Sydney and Melbourne in recent months. Higher housing prices and the associated increase in housing turnover were expected to support consumption and property investment.
He states that
coming to an end was the downturn in global growth that started in
2018 and that global growth is expected to be slightly stronger this
year and next than it was last year.
He credits the
expected growth to low interest rate trends, recent tax refunds,
continuing infrastructure spending, a better resource sector forecast
and, later this year, an estimated improvement in residential
construction. Mr. Lowe also points out that the Australian dollar is
around its lowest in recent times and will help exporters.
Post Source Here: Housing Construction Boost Growth
