The Australian mining industry’s planned $55 billion of investment spending in 2010-11 (in conjunction with high export prices) is likely to more than offset the adverse economic impacts arising from recent declines in building approvals.
According to the Government’s latest economic forecasts, released in today’s Mid-Year Economic and Fiscal Outlook (MYEFO):
Australia’s GDP is forecast to grow by 3 1⁄4 per cent in 2010-11 and 3 3⁄4 per cent in 2011-12, reflecting strong business investment, rising commodity exports and robust income growth supporting household consumption.
The massive surge in mining sector investment is seen clearly in the following MYEFO chart:
And the good news on mining sector investment keeps coming: