Australia's investment appetite sustaining economy
Australia's investment appetite is providing a healthy buffer against a global economic slowdown, with the value of major mining and infrastructure projects now reaching $415.4 billion.
That's according to Deloitte Access Economics' December 2011 issue of 'Investment Monitor', which stated that the value of definite projects (those classed as under construction or committed to commence soon) had grown by $18.7 billion in the December quarter.
This represented an increase of 2.1 per cent on the September quarter, and a 43.0 per cent rise over the past 12 months.
The projects involved include Origin Energy's Australia Pacific LNG development ($19.6 billion) in Gladstone and the approval of Inpex's gas project ($33 billion) in Darwin.
According to Deloitte, engineering construction activity accounted for all of the growth in Australia's economy during the September quarter of 2011.
A significant 57 per cent ($323.5 billion) of investments committed or in planning was dedicated to projects located in the north and west of the 'Brisbane Line', while mining projects accounted for 46 per cent of all investment projects currently under construction or committed.
Economic infrastructure, including transport, ports and telecommunications, has also been helped along by the mining boom, particularly via a range of ports and energy projects, Investment Monitor stated.
Meanwhile, the value of non-residential buildings is not expected to attract significant investment in the near future, given weak retail spending.
Deloitte expects investment levels to continue to rise over 2012 as a significant number of projects await approval, of which mining projects will again dominate.
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