Australia & New Zealand combined will see nominal GDP growth in the 2nd half of 2021):
International bidding to procure construction materials has sent the cost of imported lumber, plywood, copper, rebar and other materials skyrocketing in both Australia and New Zealand.
Contractors are experiencing material shortages, delivery times on construction materials have increased from a normal 2 to 4 weeks to 4 to 8 weeks to arrive at site and even longer in some cases.
Australia & New Zealand, because of their remote location, have weathered the COVID pandemic remarkably well.
Australia’s economic relationship with China has seriously cooled down in the last 6 months, this issue is related to China’s South China Sea territorial claims that Australia is criticizing. This dispute will impact Australian mineral exports and could impact future mining related projects.
Australia is experiencing a housing / apartment / home remodeling surge similar to what the USA and Canada is undergoing.
We do expect a gradual & steady economic upturn as we transition into the 2nd half 2021 and the number of COVID-19 confirmed cases starts to significantly decline & travel restrictions are lifted.
COVID-19 has hindered CAPEX spending and delayed current construction projects in both countries. Australia and New Zealand in their two centuries of existence have never experienced an economic tsunami / earthquake of this scale. The Government of New Zealand is preparing to invest considerable funds on infrastructure / public works projects to minimize current and future unemployment.