ABC News is reporting that economic forecaster BIS Shrapnel expects mining production to soar by 41% in the next five years. This surge in Australian mining production will offset some of the negative economic effects of declining investment in the sector.
The BIS Shrapnel report says mining activity as a share of Australia’s GDP will rise from 18.7 per cent to almost 20 per cent.
Adrian Hart, BIS Shrapnel’s head of infrastructure and mining, says despite growing concerns about how Australia will cope without the resources investment and construction boom, mining will continue to drive economic growth.
“The growth in the mining part of the Australian economy is being driven by production,” he said. “It’s going to more than outweigh the detraction caused by a weaker construction and investment profile.”
At the same time, mining investment is expected to fall by 20 per cent and lead to mixed results for workers in the resources sector. “If you’re in the construction industry, it’s tough,” Mr Hart said. “We’re forecasting a 40 per cent fall in buildings and structures activity over the next five years in mining.
“But on the other hand, if you’re involved on the production, operations, maintenance, facilities management – all of these areas are going to go ahead quite strongly through the next five years.”
The full article is available on ABC News.