Investment picks up as restrictions ease | Liverpool City Champion

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As restrictions on coronaviruses ease, business investment is expected to pick up, although it is shaped by how governments manage border restrictions and quarantine requirements.

The threat of instant lockdowns also presents a difficult backdrop for new investments, says Deloitte Access Economics in its latest quarterly investment monitor.

Deloitte partner Stephen Smith says the COVID era has dramatically changed where, when and how people work too.

“This is likely to shape the types of investments required over the next few decades,” he said.

“The proportion of people working from home is expected to remain above pre-COVID levels at all times, with ripple effects for investments in transportation networks and our CBDs.”

Deloitte expects business investment to increase in 2021/22 before accelerating in 2022/23, adding almost 1.5 percentage points to economic growth during this period.

Public investment has now reached an all-time high as a share of the economy, with ongoing projects reaching $ 202 billion in 2021, from a low of $ 131 billion at the start of 2015.

Deloitte expects that figure to reach $ 285 billion in 2023.

“This will see the value of infrastructure investments exceed the peak of activity seen during the mining construction boom,” Smith said.

However, the outbreaks of the Delta variant have increased pressure on an already strained construction industry suffering from a shortage of workers.

“Normally, when this happens, workers are recruited from other countries, but COVID has put an end to this and the high level of investment in global infrastructure means Australian entrepreneurs might not see immediate relief when the reopening of international borders, ”Smith said.

“To make matters worse, there have also been shortages of building materials, with the prices of key inputs rising… and there could be further increases with supply chain issues expected to extend to in 2022. “

He said that with a record amount of infrastructure work to be completed, as well as a large pipeline of residential construction activities, it would be difficult for contractors to deliver projects on time and on budget.

Overall, the value of capital projects rose $ 9.5 billion to a five-year high of $ 793.0 billion in the September quarter, an increase of 1.2% from in the previous quarter.

The value of defined projects – those under construction or underway – increased $ 7.9 billion in the quarter to $ 331.3 billion.

The value of planned projects – those under consideration or potential – increased $ 1.6 billion in the quarter to $ 461.7 billion.

Associated Australian Press


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