Australia & New Zealand combined will see nominal GDP growth in the 4th Q 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 10 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.
The recently announced AUKUSA nuclear submarine deal has upset China. While it’s early days for the AUKUS program, the pact will bring a number of key technological benefits to Australia.
We do expect a gradual & steady economic upturn as we transition into 4th Q 2021 and the number of COVID-19 confirmed cases starts to significantly decline & travel restrictions are lifted.
Australia is experiencing a housing / apartment / home remodeling surge similar to what the USA and Canada is undergoing.
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 ever 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.