Australia's resource investment likely to fall in next 5 years: BREE
2013-05-22 12:24:13
Australia's committed investment in resources and energy projects has peaked, the Bureau of Resources and Energy Economics said in a report released on Wednesday.
It forecasts investment to decline over the next five years as a result of fewer high value projects progressing through the investment pipeline to offset the completion of the LNG projects that are currently under construction.
According to estimates, around A$150 billion of high value projects have been delayed or canceled since April 2012, while cost increases to committed projects currently account for 11 percent of the stock of committed investment.
Australia can generate higher level of investment if projects which are rated currently as "possible" progress through the committed stage over the next five years, said Professor Quentin Grafton, executive director and chief economist at BREE.