Shaista Shaista
We forecast total construction work done to decline 4.3% in 2025, down from our previous forecast of -3.9%. This downgrade comes mostly as a result of disappointing residential and non-residential approvals over Q4 2025, in addition to higher engineering construction taking place over Q4 2024 resulting in a small growth downgrade due to base effects.
Investment drives economic growth, but in recent years, the Australian economy has been dependent on growth in public investment while growth in private investment has flatlined. Over the second half of the 2020s, this trend is expected to reverse, with rising private investment stirring stronger economic outcomes, but also driving changes in the pattern and volume of construction activity.