Meanwhile, in line with fiscal consolidation at state and federal levels, public demand has made no contribution to growth for the country as a whole, but the contribution is mixed across the different states. In time, a pick-up in household demand should encourage businesses (outside of the resources sector) to increase employment and undertake more investment.
When that occurs, businesses will make more use of funding that is currently readily available at low cost. Also, exports, especially of resources – most notably liquefied natural gas (LNG) – are expected to continue to contribute significantly to growth, while declining mining investment and, to a lesser extent, fiscal consolidation are likely to weigh on growth over the next couple of years.