2 Infrastructure expectations and drivers of demand
Key Points ■ Australians expect the nation's infrastructure to sustain and improve current living standards and quality of life. ■ Australia's population is projected to grow at around 1.6 per cent per year to 2031. Most of this growth will be in the largest capital cities. ■ The economy is projected to grow at around three per cent per year, with some variation in growth rates between the states and across industries. Governments will need to focus on how decisions in the infrastructure sector can strengthen industries in which Australia has a competitive advantage. ■ Productivity in the infrastructure sectors has been static or falling, although there are cyclical influences. Declines in multi factor productivity need to be addressed. |
This chapter provides context for the discussion in subsequent chapters of particular infrastructure issues.
It opens with an examination of Australians' higher order aspirations. This provides important guidance as to what Australians expect from their infrastructure. It then considers the two principal drivers of demand for infrastructure - growth in population and economic activity. The discussion on economic issues includes an examination of trends in economic productivity, both generally and within the infrastructure sectors.