Treasury forecasts multi-year business investment growth
Make us a preferred source
Make us a preferred source on Google
The news: Business investment growth is forecast to grow for six consecutive years until 2025-26, according to new Treasury forecasts that will be officially released in the budget.
The numbers: In real terms, business investment is forecast to grow 5.5% in 2023-24, followed by 1% in 2024-25 and 2% in 2025-26. In 2022-23 it totalled 8.3%.
The context: Private investment is critical for several key sectors, including the energy transition. Significant government investment in renewable energy is expected to help drive this, but the private sector is a major component.
The government is likening the long stretch in business investment to the 2000s mining boom.
What they said: "Public investment is important but only part of the story, which is why these forecasts for private investment are so encouraging," Treasurer Jim Chalmers said in a statement.
"A big focus of the budget will be on attracting private capital but also about how we better absorb and deploy it, which will include a focus on skills, approvals and our broader investment settings."
The source: Treasury forecasts
