SYDNEY, Nov. 4 (Xinhua) -- A new report has called for Australian businesses to overcome their fears regarding COVID-19 and push forward with investment in order to fuel the nation's economic recovery.
In releasing the Deloitte Access Economics' quarterly Investment Monitor on Wednesday, lead author Stephen Smith said that business investment would play a crucial role in the recovery from COVID-19.
"After all, it won't really be a recovery until businesses are willing to bet on the future by expanding their productive capacity," Smith said.
According to the report, private business investment is forecast to fall sharply in 2020 before returning to positive growth in 2021, and accelerating in 2022.
"That said, government investment is set to reach new heights in the coming years as infrastructure plays a key role in post-COVID stimulus efforts."
Smith pointed out that the cost of government infrastructure projects had fallen due to record low interest rates, meaning the government could borrow money cheaper than ever before.
The value of projects in Deloitte's database during the September quarter rose by 2.8 percent to 748.1 billion Australian dollars (531.5 billion U.S. dollars), primarily due to new publicly funded infrastructure investment. however, the value of definite projects, those under construction or committed, decreased by 1.5 billion Australian dollars (1.06 billion U.S. dollars).
Meanwhile, industry investment recovery was expected to be uneven, with some sectors bouncing back faster than others, and commercial and engineering construction likely lagging behind.
"Mining investment will perform relatively well, partly because China's economy is recovering from COVID-19 quicker than most," Smith said.
"Spending will also be concentrated in Australia's east and south, with New South Wales, Victoria and Queensland expected to account for 80 percent of total infrastructure projects under construction in 2022." Enditem
