“The fact that economic growth is now at its weakest in a decade makes the task of actioning new infrastructure projects all the more urgent,” Shane Garrett, Chief Economist of Master Builders Australia said.
“Today’s ABS figures indicate that Australia’s economy expanded by just 1.8% over the year to March 2019, the most sluggish result we have seen since the GFC-era in 2009,” he said.
“In the first three months of this year, households reined in their spending amidst continued weakness in the housing market. Home renovations demand has slumped and the volume of new home building activity also moved lower, eating into economic growth,” Shane Garrett said.
“The government needs to take the lead on economic growth and convert recent high profile announcements on infrastructure into visible action on the ground,” he said.
“Yesterday’s interest rate reduction along with recent initiatives on First Home Buyers offers provides a real opportunity to bring the two-year long housing slump to an end,” Shane Garrett said.
Strong and swift action from government on infrastructure could be the critical intervention we need to propel things forward,” Shane Garrett said.