Australian immigration to aid economic growth

August 03 2009 by Matt Jones

Australian immigration boost to house construction

Recent statistics have revealed that people who move to Australia may be giving the country a helping hand towards economic recovery. This is because housing construction in Australia will contribute to economic growth and relieve upward pressure on house prices.

Record levels of people applying for an Australia visa, combined with the highest population growth in 25 years, mean there is soon to be a strong demand for properties at a time when the rate of construction is at an all-time low.

There was a 9.3% increase in approvals to build new Australian homes in June which, according to Brian Redican, a senior economist at Macquarie, “shows the housing market is going to be a major driver of economic growth over the next 12 months."

These figures reinforce a series of recent studies, reporting increases in household spending and consumer and business confidence.

Reserve Bank of Australia (RBA) Governor, Glenn Stevens, said last week that risks to the economy were now more balanced, leading the market to price out any chance of more rate cuts. The central bank reduced its key cash rate by 425 basis points between September and April, but investors are now pricing in a chance of a first hike as early as Christmas.

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