Australia’s leading economists say energy and infrastructure spending should be a higher priority if the federal government loosens its fiscal agenda, and not just roads and transport, as the economy searches for a boost to counter slowing growth and the negative shock of the bushfire emergency.
Respondents to The Australian Financial Review’s quarterly survey said increased infrastructure spending was one of the key economic reforms worth considering, echoing Reserve Bank governor Philip Lowe’s comments last year inviting governments to act on fiscal and structural reforms.
“In terms of the encouraging private infrastructure investment without significant taxpayer cost, surveys make it very clear that the lack of a coherent and bipartisan energy policy over the past decade has severely damaged investor confidence,” said Yarra Capital Management’s head of macro and strategy, Tim Toohey.
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