Open figure viewer
Significance
The sector is struggling with higher operating costs, delivery delays and costlier debt servicing, leading regulators to warn that more firms will fail after last month’s collapse of industry leader Probuild. The impact of COVID lockdowns has been significant on a sector that accounts for 9% of GDP and employs more than 1 million people.
Impacts
Despite short-term debt issues, the construction sector is still expected to grow over the next five years.
An increasing reliance on imported materials will leave the industry more exposed to supply issues.
Low productivity in the construction sector risks depressing the level of infrastructure activity.
Keywords:
Australia,
AP,
economy,
industry,
construction,
growth,
infrastructure,
policy,
prices,
property
© Oxford Analytica 2022. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2022
You do not currently have access to this content.
