ANZ says in its Major Project Update that investment in 2014 is expected to be lower than in 2013 and step down quickly after that.
The bank’s economists revised down the potential pipeline of major projects in Australia between 2014 and 2016 to $280 billion from the previous estimate of $312 billion.
But it’s not all bad news according to the ANZ which also said:
As the investment phase of the resources boom winds down, the production phase will ramp up. Australian iron ore production is expected to increase to 685 million tonnes in 2015 from 550 million tonnes in 2013, with LNG output ramping up from 2015 onwards. We are currently forecasting resource exports to contribute around 1ppt to GDP growth annually in coming years. Initially much of the growth will be derived from stronger iron ore export volumes, with LNG exports becoming increasingly important from 2015 onwards.