Investment in the construction and mining industries will help the economy to grow and Australia's property market to pick up, one commentator has claimed.
Frank Gelber, chief economist for BIS Shrapnel, wrote in the Australian newspaper that residential building recovery may currently be stalling, but that it will resume.
He went on to say that this will be driven by a stock shortage as the population expands and Australian property is increasingly in demand.
"The real issue is whether private construction will come through in time to offset the fall in government investment," he added.
Mr Gelber said that another driver of the country's recovery will be the strength of the Australian dollar.
Last month, a study conducted by international property and construction consultants Davis Langdon found that confidence had improved across Australia's construction sector.
Approximately 1,800 construction-related businesses across the country were involved in the survey and 63 per cent said they were optimistic about the near future of their industry.
Posted by Ravin Chatlani
