CII’s flagship monthly publication Economy Watch has been now revamped and rechristened as ‘Economy Matters’. Apart from encompassing all the key features of the old version, the new issue also carries a new section on Corporate Profitability to keep readers abreast about the latest trends in corporate performance. The ‘Economy Matters’ brought out by CII Research seeks to provide an in-depth update on current trends in the domestic and international economy and helps in tracking policy developments and understanding industry dynamics.
Impact of COVID19 on Real Estate in IndiaSam Ghosh
According to a JLL report, sales of residential units decreased by 29% in Q1 2020 over the same period last year. Net absorption of office spaces in Q1 2020 witnessed a decline of 30% from the peak observed in Q1 2019. The real estate industry Is dealing with distress in the short term without any doubt.
Long term prospects are quite mixed though.
Young professionals are likely to avoid shared accommodations in the aftermath of COVID and prefer either owning or renting/leasing private accommodations. A lower interest rate environment creates a favourable environment. Although financial uncertainties may stop them from committing to debt payments. Well designed package of flexible financing, leasing, and payment options may help residential real estate players grow in spite of economic slump.
For commercial real estate players, work from home culture and subdued business sentiment draw a bleak picture. The focus should be on maintaining occupancy and alternative use of assets.
Social distancing, economic distress, and rapid growth of e-commerce may affect long term prospects for retail real estate. Retail real estate players need to adapt to changes in demand. For example, cloud kitchens in place of sit-down restaurants and high-street shops in place of malls.
A lingering fear of infection, work from home culture, etc. may cause medium-term depression in both business and leisure travel. This will result in depressed demand for the hospitality sector for a few quarters. Hospitality real estate players need to find an alternative use for their assets if the hospitality demand does not pick up and operators start going out of business.
Impact of COVID-19 on Indian Economy: 28th November 2020Sam Ghosh
Indian economy entered a technical recession with two consecutive quarters of GDP contraction in Q2 of FY 2020-21. Results released by the National Statistical Office shows that the GDP of India during the H1 of FY 2020-21 contracted by 15.7% at Constant (2011-12) Prices and 13.3% at Current Prices. While quarterly GDP in Q2 FY 2020-21 in rupee terms improved from Q1 FY 2020-21 by 23% at Constant Prices and 24% at Current Prices, it is still 7.5% and 4% lower than Q2 of FY 2019-20 at Constant and Current Prices respectively. The contraction was caused by a drastic drop in private consumption (which contributes around 60% of Indian GDP) and a drop in gross fixed capital formation.
The policy repo rate has been reduced by 115 basis points from the beginning of 2020 to record low levels. Apart from that, RBI is injecting liquidity through various Open Market Operations and Long Term Repo Operations. Currency with the public increased by ~20% from the end of 2019 to the end of October 2020. We can safely say that the Indian economy is flushed with liquidity.
Consumer inflation remains above the policy range of 4%+2%, and with a GDP contraction, the Indian economy is dealing with stagflation.
On the fiscal front, total monthly receipts remained lower than the same period last year for the whole Q1 and Q2 (April - September) FY 2020-21. October receipts show signs of improvement. Fiscal expenditure on the other hand was maintained at the same levels of FY 2019-20 in FY 2020-21 till October. The fiscal deficit stood at 119.7% of the Budget Estimates as of October 2020 due to lower receipts.
Credit growth remains sluggish especially due to lower credit uptake by the industry. Credit demand for smaller companies was low from the beginning of fiscal 2020-21 which improved after August. Credit uptake by the large corporates dropped after July 2020.
Household savings increased dramatically from Rs.5.32 lakh crores in Q4 of FY 2019-20 to Rs. 8.16 lakh crores in Q1 of FY 2020-21 - a more than 50% increase. Most of the increase in household savings resulted from an aversion to liabilities. It signifies that the households turned conservative about their finances to deal with impending financial distress.
The unemployment rate shot-up in April and May 2020 above 20% and moderated to below 10% levels after June 2020. Employees' Provident Fund records show healthy job creation in September 2020.......
CII’s flagship monthly publication Economy Watch has been now revamped and rechristened as ‘Economy Matters’. Apart from encompassing all the key features of the old version, the new issue also carries a new section on Corporate Profitability to keep readers abreast about the latest trends in corporate performance. The ‘Economy Matters’ brought out by CII Research seeks to provide an in-depth update on current trends in the domestic and international economy and helps in tracking policy developments and understanding industry dynamics.
Impact of COVID19 on Real Estate in IndiaSam Ghosh
According to a JLL report, sales of residential units decreased by 29% in Q1 2020 over the same period last year. Net absorption of office spaces in Q1 2020 witnessed a decline of 30% from the peak observed in Q1 2019. The real estate industry Is dealing with distress in the short term without any doubt.
Long term prospects are quite mixed though.
Young professionals are likely to avoid shared accommodations in the aftermath of COVID and prefer either owning or renting/leasing private accommodations. A lower interest rate environment creates a favourable environment. Although financial uncertainties may stop them from committing to debt payments. Well designed package of flexible financing, leasing, and payment options may help residential real estate players grow in spite of economic slump.
For commercial real estate players, work from home culture and subdued business sentiment draw a bleak picture. The focus should be on maintaining occupancy and alternative use of assets.
Social distancing, economic distress, and rapid growth of e-commerce may affect long term prospects for retail real estate. Retail real estate players need to adapt to changes in demand. For example, cloud kitchens in place of sit-down restaurants and high-street shops in place of malls.
A lingering fear of infection, work from home culture, etc. may cause medium-term depression in both business and leisure travel. This will result in depressed demand for the hospitality sector for a few quarters. Hospitality real estate players need to find an alternative use for their assets if the hospitality demand does not pick up and operators start going out of business.
Impact of COVID-19 on Indian Economy: 28th November 2020Sam Ghosh
Indian economy entered a technical recession with two consecutive quarters of GDP contraction in Q2 of FY 2020-21. Results released by the National Statistical Office shows that the GDP of India during the H1 of FY 2020-21 contracted by 15.7% at Constant (2011-12) Prices and 13.3% at Current Prices. While quarterly GDP in Q2 FY 2020-21 in rupee terms improved from Q1 FY 2020-21 by 23% at Constant Prices and 24% at Current Prices, it is still 7.5% and 4% lower than Q2 of FY 2019-20 at Constant and Current Prices respectively. The contraction was caused by a drastic drop in private consumption (which contributes around 60% of Indian GDP) and a drop in gross fixed capital formation.
The policy repo rate has been reduced by 115 basis points from the beginning of 2020 to record low levels. Apart from that, RBI is injecting liquidity through various Open Market Operations and Long Term Repo Operations. Currency with the public increased by ~20% from the end of 2019 to the end of October 2020. We can safely say that the Indian economy is flushed with liquidity.
Consumer inflation remains above the policy range of 4%+2%, and with a GDP contraction, the Indian economy is dealing with stagflation.
On the fiscal front, total monthly receipts remained lower than the same period last year for the whole Q1 and Q2 (April - September) FY 2020-21. October receipts show signs of improvement. Fiscal expenditure on the other hand was maintained at the same levels of FY 2019-20 in FY 2020-21 till October. The fiscal deficit stood at 119.7% of the Budget Estimates as of October 2020 due to lower receipts.
Credit growth remains sluggish especially due to lower credit uptake by the industry. Credit demand for smaller companies was low from the beginning of fiscal 2020-21 which improved after August. Credit uptake by the large corporates dropped after July 2020.
Household savings increased dramatically from Rs.5.32 lakh crores in Q4 of FY 2019-20 to Rs. 8.16 lakh crores in Q1 of FY 2020-21 - a more than 50% increase. Most of the increase in household savings resulted from an aversion to liabilities. It signifies that the households turned conservative about their finances to deal with impending financial distress.
The unemployment rate shot-up in April and May 2020 above 20% and moderated to below 10% levels after June 2020. Employees' Provident Fund records show healthy job creation in September 2020.......
It is widely accepted that Indian economy is recovering, albeit slowly, from the disruptions created by demonetization (November 2016) and implementation of GST (July 2017). The GDP growth is forecast to recover from below 6% in FY17 to more than 7% in FY19. At this rate, India will be the fastest growing economy amongst all major global economies.
The positives are all well known and appreciated by markets and global agencies, as the entire government machinery is busy marketing these.
Nonetheless, for investors, it is important to take a note of the red flags that are too conspicuous and could have serious repercussions on the sustainability of the economic recovery and hence corporate earnings.
Government Expenditure and Economic Growth Nexus: Empirical Evidence from Nig...iosrjce
This study has examined the impact of public expenditure on economic growth in Nigeria using time
series data for the period 1970-2012. Secondary data were sourced from the CBN, NBS, journals, text books
etc. The adopted model was fitted with three variables: real GDP, capital and recurrent expenditure. The tools
of analysis were the ADF unit root test and ordinary least square multiple regression accompanied by pairwise
Granger causality test. The major objective of this study is to analyse the impact as well as direction of
causality between the fiscal variables and economic growth. All the variables included in the model are
stationary at level. Empirical findings from the study show that there is positive and insignificant relationship
between capital expenditure and economic growth while recurrent expenditure had a significant positive impact
on economic growth. Also, Granger causality test demonstrates a unidirectional causality running from the
fiscal variables to economic growth in validation of the Keynesian theory. Consequently, the study
recommended more allocation of resources for recurrent purposes as well; government should establish the
body that will monitor contract awarding process of capital projects closely, to guard against over estimation of
project cost and stealing of public funds.
An Insight on current Indian markets by Mitchelle Shetty, 3P Consultants.
India is all set to be the new super power, however let us all get an insight on the current scenario of Indian market. Government stimulus packages will infuse the energy with an aim to create more jobs and increase demand. However, lets have a look at the industry impact.
Effect of budget deficits on economic growthNigus Temare
The main objective of this study was to investigate the effect of budget deficit on economic growth in Ethiopia. For this purpose, the study used time series secondary data, and the data was extracted from the World Bank development indicators, Ministry of Finance, and National Planning and Development Commission of Ethiopia. The data covered a period running from 1994 to 2020.The study employed the Autoregressive Distributed Lag (ARDL) co-integration technique to determine the long and short-run relationship between budget deficit and economic growth. The findings resulted from modeling and analysis of the study showed that there exists a negative relationship between budget deficit and economic growth in Ethiopia and these results are consistent with the neoclassical economist schools of thought. Besides, the inflation rate is affecting the economic growth negatively and significantly whereas, government expenditure and trade openness affect the economy positively and statistically significant in the long run. On the other hand, the analysis in the short-run revealed that the budget deficit is positive but statistically insignificant. This indicates that budget deficit changes have no immediate effect on economic growth. The study suggested some policies which are important for the government of Ethiopia to avoid certain levels of the budget deficit to achieve the desired level of growth.
MEANING
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
Mercer Capital's Value Focus: Construction and Building Materials | Q2 2020 |...Mercer Capital
Mercer Capital's Construction Industry newsletter provides a broad range of specialized valuation and transaction advisory services to the construction industry, including residential, commercial, civil, paving, concrete, and more. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more.
Mercer Capital's Value Focus: Construction and Building Materials | Q1 2020 |...Mercer Capital
Mercer Capital's Construction Industry newsletter provides a broad range of specialized valuation and transaction advisory services to the construction industry, including residential, commercial, civil, paving, concrete, and more. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more.
Mercer Capital's Value Focus: Construction and Building Materials | Q1 2020 |...Mercer Capital
Mercer Capital's Construction Industry newsletter provides a broad range of specialized valuation and transaction advisory services to the construction industry, including residential, commercial, civil, paving, concrete, and more. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more.
It is widely accepted that Indian economy is recovering, albeit slowly, from the disruptions created by demonetization (November 2016) and implementation of GST (July 2017). The GDP growth is forecast to recover from below 6% in FY17 to more than 7% in FY19. At this rate, India will be the fastest growing economy amongst all major global economies.
The positives are all well known and appreciated by markets and global agencies, as the entire government machinery is busy marketing these.
Nonetheless, for investors, it is important to take a note of the red flags that are too conspicuous and could have serious repercussions on the sustainability of the economic recovery and hence corporate earnings.
Government Expenditure and Economic Growth Nexus: Empirical Evidence from Nig...iosrjce
This study has examined the impact of public expenditure on economic growth in Nigeria using time
series data for the period 1970-2012. Secondary data were sourced from the CBN, NBS, journals, text books
etc. The adopted model was fitted with three variables: real GDP, capital and recurrent expenditure. The tools
of analysis were the ADF unit root test and ordinary least square multiple regression accompanied by pairwise
Granger causality test. The major objective of this study is to analyse the impact as well as direction of
causality between the fiscal variables and economic growth. All the variables included in the model are
stationary at level. Empirical findings from the study show that there is positive and insignificant relationship
between capital expenditure and economic growth while recurrent expenditure had a significant positive impact
on economic growth. Also, Granger causality test demonstrates a unidirectional causality running from the
fiscal variables to economic growth in validation of the Keynesian theory. Consequently, the study
recommended more allocation of resources for recurrent purposes as well; government should establish the
body that will monitor contract awarding process of capital projects closely, to guard against over estimation of
project cost and stealing of public funds.
An Insight on current Indian markets by Mitchelle Shetty, 3P Consultants.
India is all set to be the new super power, however let us all get an insight on the current scenario of Indian market. Government stimulus packages will infuse the energy with an aim to create more jobs and increase demand. However, lets have a look at the industry impact.
Effect of budget deficits on economic growthNigus Temare
The main objective of this study was to investigate the effect of budget deficit on economic growth in Ethiopia. For this purpose, the study used time series secondary data, and the data was extracted from the World Bank development indicators, Ministry of Finance, and National Planning and Development Commission of Ethiopia. The data covered a period running from 1994 to 2020.The study employed the Autoregressive Distributed Lag (ARDL) co-integration technique to determine the long and short-run relationship between budget deficit and economic growth. The findings resulted from modeling and analysis of the study showed that there exists a negative relationship between budget deficit and economic growth in Ethiopia and these results are consistent with the neoclassical economist schools of thought. Besides, the inflation rate is affecting the economic growth negatively and significantly whereas, government expenditure and trade openness affect the economy positively and statistically significant in the long run. On the other hand, the analysis in the short-run revealed that the budget deficit is positive but statistically insignificant. This indicates that budget deficit changes have no immediate effect on economic growth. The study suggested some policies which are important for the government of Ethiopia to avoid certain levels of the budget deficit to achieve the desired level of growth.
MEANING
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
Mercer Capital's Value Focus: Construction and Building Materials | Q2 2020 |...Mercer Capital
Mercer Capital's Construction Industry newsletter provides a broad range of specialized valuation and transaction advisory services to the construction industry, including residential, commercial, civil, paving, concrete, and more. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more.
Mercer Capital's Value Focus: Construction and Building Materials | Q1 2020 |...Mercer Capital
Mercer Capital's Construction Industry newsletter provides a broad range of specialized valuation and transaction advisory services to the construction industry, including residential, commercial, civil, paving, concrete, and more. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more.
Mercer Capital's Value Focus: Construction and Building Materials | Q1 2020 |...Mercer Capital
Mercer Capital's Construction Industry newsletter provides a broad range of specialized valuation and transaction advisory services to the construction industry, including residential, commercial, civil, paving, concrete, and more. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more.
Coronavirus Impact Assessment And Mitigation Strategies In Construction And R...SlideTeam
This presentation is a useful tool in presenting coronavirus impact assessment and mitigation strategies on real estate and construction. This presentation will allow an organization to address a collection of COVID 19 outbreak impact assessment and mitigation strategies reported in the construction and real estate. The slide covers the impact on COVID on the real estate and construction sector globally which affects the agency and brokerage market. Our presentation contains the sections namely real estate industry overview, risk assessment, and its impact, how risks are mitigated, and the risk maturity model survey questionnaire. The graph in the slide showcases the areas which are affected the most due to coronavirus in the real estate and construction business. The mapping section shows the details of the state which halted construction due to pandemic effect within the economy. It also shows the impact of COVID on effective rent growth in the construction real estate industry on the overall US economy. Further, it covers key indicators and highlights for the real estate and construction industry such as single-family housing, multifamily permits, jobless claims, etc. Risk assessment and its impact section will cover five major risks caused by a coronavirus in the real estate industry namely disruption due to social distancing, plummeting employee productivity, stressed supply chain, recession, unemployment, and investment pullout, economic instability, and civic unrest. How risks are mitigated section will help the organization to address measures taken by the manufacturing sector to tackle COVID 19 outbreak. Subheadings covered in the section are business impact analysis, risk readiness assessment, risk management plans, business continuity plans, policy management, and incident management. Finally, the risk maturity model survey questionnaire section will help the organization to address the survey results of questionnaires asked from manufacturers. https://bit.ly/2Qs2L18
Economy Matters is bi-monthly newsletter of CII on Economic Affairs.
Our major neighboring economies- Sri Lanka, Bangladesh, Pakistan and Nepal - too are facing the heat as both global slowdown and country specific factors have stunted their domestic economic growth. We discuss the major trends in these South Asian economies in the section on Global Trends in this month’s issue of Economy Matters.
In the section on Domestic Trends, we discuss the trends emanating out of the recent releases on GDP, IIP, Inflation and Trade during the month of August-September 2013.
In Corporate Performance, we examine the financial performance of larger sample of firms in the first quarter of the current year, in order to decipher the evolving trends.
The Sectoral spotlight for this issue is on Capital Goods, which is of strategic importance for the Indian economy. Being large and diverse in nature and playing a critical role in production process, the sector has high multiplier effect on the overall growth of the economy.
In the Special Article, we discuss various provisions of the Land Acquisition, Rehabilitation & Resettlement Bill 2013, which was recently passed by both the Houses of the Parliament. Industry has concerns on some of the provisions of the Bill.
Australia’s Construction Industry Rises FurtherBrandon_Quinn
Commercial builders will also be active with construction growing by almost 2 per cent this year. It will pick up further in 2019. By then, the commercial construction sector will have grown by 9.4 per cent.
Export nations need to ensure that supply chains remain as intact as possible. This means that when and where credit insurers are withdrawing from covering international trade during this crisis, the government exceptionally steps in. Otherwise there is a risk a collapse of finely woven supply chains.”
The 2017 tax act changed the corporate income tax rate, international taxes, the taxation of domestic business activity, individual income taxes, and estate and gift taxes. It also eliminated the penalty for not having health insurance and required the use of an alternative inflation measure to adjust tax provisions.
Those changes will have effects on the economy’s productivity and output, income, and the federal budget, all of which are reflected in CBO’s baseline economic and budget projections.
Presentation by Wendy Edelberg, Associate Director for Economic Analysis at CBO, at the National Bureau of Economic Research. Originally posted to SlideShare on April 13, 2017. CBO reposted this presentation with a corrected value of 0.9 million jobs for the effect of the 2017 tax act on average nonfarm payroll employment during the 2018–2028 period (see slide 13).
Preparedness in cities and other urban settlements is critical for effective local, regional, national and global responses to COVID-19. A well-designed pandemic plan in urban settlements allows to respond in a flexible way to varying levels of severity and to refine your response as needed. Education, housing, work, socializing and community kinship shapes the way we live, strive and thrive in cities. Population density is not the only parameter to be blamed for the pandemic in developing countries. The type of housing - township, apartments, independent houses, make shift homes, informal settlements, redevelopment buildings and slums also are a key parameter that hinders controlling the spread or transmission of outbreak. The way we live – sanitation, hygiene, food habits, our environment, transport, connectivity, our social outlook and approach also are detrimental and have a direct bearing for the outbreak to spread to the extent of being a pandemic.
Mercer Capital's Value Focus: Construction Industry | Q2 2015Mercer Capital
Mercer Capital’s Construction Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to the construction industry, including residential, commercial, civil, paving, concrete, and more. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more.
this issue.
Climate Governance Initiative Australia
The AICD is the host of the Climate Governance
Initiative Australia which assists in supporting
our members in meeting the challenges and
opportunities of governing climate change risk.
As host of the Australian Chapter of the Climate
Governance Initiative, our members have
access to a global network of experts in risk
and resilience and to non-executive directors
who are leading their organisations’ governance
response to climate change.
The Climate Governance Initiative (CGI) is an
active and rapidly expanding network of over
20 bodies globally, whose Chapters promote the
World Economic Forum Climate Governance
Principles for boards and effective climate
governance within their jurisdictions. The
principles are set out in Appendix 2 of this guide.
The principles support directors to gain
awareness, embed climate considerations into
board decision making, and understand and act
upon the risks and opportunities that climate
change poses to their organisations.
CGI chapters have already been established
in many comparable countries, including the
UK, US (hosted by the National Association of
Corporate Directors), Canada (hosted by the
Institute of Corporate Directors) and France.
Australian Bushfire
and Climate Plan
Final report of the National Bushfire and Climate Summit 2020
The severity and scale of Australian bushfires
is escalating
Australia’s Black Summer fires over 2019 and 2020
were unprecedented in scale and levels of destruction.
Fuelled by climate change, the hottest and driest year
ever recorded resulted in fires that burned through land
two-and-a-half times the size of Tasmania (more than 17
million hectares), killed more than a billion animals, and
affected nearly 80 percent of Australians. This included
the tragic loss of over 450 lives from the fires and
smoke, more than 3,000 homes were destroyed, and
thousands of other buildings.
While unprecedented, this tragedy was not
unforeseen, nor unexpected. For decades climate
scientists have warned of an increase in climaterelated disasters, including longer and more
dangerous bushfire seasons, which have become
directly observable over the last 20 years. Extremely
hot, dry conditions, underpinned by years of reduced
rainfall and a severe drought, set the scene for the
Black Summer crisis.
Recommendations - The 3 Rs - Response,
Readiness and Recovery
There is no doubt that bushfires in Australia have
become more frequent, ferocious and unpredictable
with major losses in 2001/02 in NSW, 2003 in the
ACT, 2013 in Tasmania and NSW, 2018 in Queensland,
2009 Black Saturday Fires in Victoria and 2019/20 in
Queensland, NSW, Victoria and South Australia. We are
now in a new era of supercharged bushfire risk, forcing
a fundamental rethink of how we prevent, prepare for,
respond to, and recover from bushfires.
This Australian Bushfire and Climate Plan report
provides a broad plan and practical ideas for
governments, fire and land management agencies
and communities to help us mitigate and adapt to
worsening fire conditions. The 165 recommendations
include many measures that can be implemented right
now, to ensure communities are better protected.
How to work with petroleum hydrocarbon suppliers to reduce and eliminate cont...Turlough Guerin GAICD FGIA
Petroleum hydrocarbon suppliers affect a mine's goals for environmental performance because of the extensive reach of petroleum hydrocarbon products into the mining and minerals product life cycle, their impact on operational efficiencies, cost, and mine viability, and their potential for leaving negative environmental as well as safety legacies. The supplied petroleum hydrocarbon life cycle is a framework that enables structured engagement between supplier and customer on a range of environmental performance issues because it is an example of input into the mining industry that affects the entire mining and minerals processing an value chain. Engagement with suppliers in a proactive manner can be a risk management strategy. Questions for businesses to ask in relation to suppliers and their role in minimizing business risks and creating new value are offered (https://onlinelibrary.wiley.com/doi/full/10.1002/rem.21669).
Governments would get bigger bang for taxpayer
buck by instead spending more on upgrading existing infrastructure,
and on social infrastructure such as aged care and mental health care.
Choosing net zero is
an economic necessity
Australia pays a high price of a global failure
to deliver new growth in recovery. Compared
to this dismal future, Deloitte Access Economics
estimates a new growth recovery could
grow Australia’s economy by $680 billion
(present value terms) and increase GDP
by 2.6% in 2070 – adding over 250,000 jobs
to the Australian economy by 2070.
The world of venture capital has seen huge changes over the past decade. Ten years ago there were fewer than
20 known unicorns in the US5
; there are now over 2006
. Annual investment of global venture capital has increased
more than fivefold over the same period, rising to $264 billion by 2019. This investment has been dominated by the
tech sector harnessing digital frontiers to disrupt traditional industries – including cloud computing, mobile apps,
marketplaces, data platforms, machine learning and deep tech.7
It is an ecosystem that acts as the birthplace for
innovation and brands that can shape the future of consumerism, sectors and markets.
As COVID-19 has taken hold of the
world, the question of whether venture
capital, and early stage investing more
broadly, is backing and scaling the
innovations our world really needs has
never been more pertinent. Life science
and biotech investing is an asset class
perhaps most resilient and relevant to
the short-term impact of COVID-19,
but there is another impact-critical
investment area that is emerging as
an increasingly important investment
frontier: climate tech.
This research represents a first-ofits-kind analysis of the state of global
climate tech investing. We define what
it is and show how this new frontier
of venture investing is becoming a
standout investing opportunity for the
2020s. Representing 6% of global
annual venture capital funding in 2019,
our analysis finds this segment has
grown over 3750% in absolute terms
since 2013. This is on the order of 3
times the growth rate of VC investment
into AI, during a time period renowned
for its uptick in AI investment.8
Looking forward can climate tech in the
2020s follow a similar journey to the
artificial intelligence (AI) investing boom
in the 2010s? The substantial rates of
growth seen in climate tech in the late
2010s, and the overarching need for
new transformational solutions across
multiple sectors of the economy,
suggests yes. The stage appears set
for an explosion of climate tech into the
mainstream investment and corporate
landscape in the decade ahead.
Nine shifts will radically change the way construction projects are delivered—and similar
industries have already undergone many of the shifts. A combination of sustainability
requirements, cost pressure, skills scarcity, new materials, industrial approaches, digitalization,
and a new breed of player looks set to transform the value chain. The shifts ahead include
productization and specialization, increased value-chain control, and greater customercentricity
and branding. Consolidation and internationalization will create the scale needed to
allow higher levels of investment in digitalization, R&D and equipment, and sustainability as well
as human capital.
Sustainable Finance Industry Guide
This industry guide provides information about sustainable finance in the built environment in Australia. It is designed to support investor understanding of Australia’s world-class rating tools and standards, and how these can be applied to direct more capital towards sustainable finance for our built environment. Included are insights that reflect lessons learnt when using a rating scheme to establish an investment framework, conduct
due diligence or report on an issuance.
Precincts to Support the Delivery of Zero Energy
This report frames the physical and organisational context for precinct action and identifies potential programs and government solutions that may be applied to better streamline the realisation of precinct-scale action to progress towards zero energy (and carbon) ready residential buildings within both new and existing precincts.
The report was developed based on a literature review and engagement with more than 80 stakeholders from industry, academia and government with the aim of identifying appropriate government action in the form of proposed solutions that may be applicable across Commonwealth, state and territory and/ or local governments.
The report has given focus to opportunities for precincts that are not already considered in the Trajectory to ensure that a wider system response is taken to considering the zero energy (and carbon) ready outcomes being sought.
When seeking funding, environmental and sustainability professionals must clarify how their role and the proposed project fit within the business' strategy.
This article provides a checklist for those seeking funding for sustainability and environmental projects.
The suggested questions will assist non-executive directors in evaluating sustainability-focused proposals.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
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2. FOREWORD
The residential development sector seeks to play a constructive role in both
sustaining Australia’s economy during the COVID-19 related downturn and
supporting a swift recovery.
We applaud the Government’s endeavours in sustaining healthy capital and
financial markets, supporting economy-wide stimulus and undertaking targeted
intervention where appropriate – as well as providing a world-leading response to
the health risks. This includes allowing construction sites to continue, subject to the
application of appropriate health and safety rules. The housing and construction
sectors play a crucial role in the nation’s economy – accounting for 7.5 percent of
growth, and generating 750,000 direct and indirect jobs, according to independent
research undertaken by EY on behalf of UDIA.
A vibrant housing and construction sector – with its multiplier effect for demand
and services generated across supply chains - is more crucial than ever given the
short- and medium-term forecasts for economic growth and unemployment. That is
why UDIA National has prepared the attached briefing paper on policy initiatives
that are tangible, measurable and can be easily implemented – consistent with the
approach the Government has taken during the pandemic.
They are also focused exclusively on the immediate term given the economic task at
hand, whereas our more medium and long-term policy goals were articulated in
documents such as the Budget Submission and earlier COVID-19 action plan. These
recommendations position the industry to partner with governments on moving
from ‘economic stabilisation’ to turbocharging the recovery – with the priority being
immediate stimulus to new housing construction.
Government leadership and action, in partnership with the states, will foster a
swifter, stronger, more sustained recovery across both the housing and construction
sector, and the broader economy.
A PLAN FOR ECONOMIC REVIVAL | PAGE 1
Simon Basheer
UDIA National President
3. UDIA’s National’s “Bounce Back” advocacy plan focuses on a set of tangible and
implementable policy priorities and reform areas to enable the housing and
construction industry to be a major springboard sector for the Australian economy to
rebound from COVID-19.
The nation’s urban development sector is well placed to play a vital role in the
economic recovery of the nation and with targeted collaboration from Federal, State
and Local governments, the platform for recovery is available.
Development and construction generate 7.5% of the nation’s economic output
according to independent research undertaken by EY on behalf of the Urban
Development Institute of Australia (UDIA) – along with 750,000 direct and indirect
jobs (212,000 jobs directly).
The property industry is the nation’s largest employer with the multiplier effect for
demand and services generated right across its supply chains, it is crucial for
domestic consumption and economic growth resulting in $312 billion in direct and
indirect output across the economy.
The current industry benchmark for the jobs multiplier is that for every $1 million
spent in construction: 2 direct FTE construction jobs would be created, 3 indirect FTE
jobs in supporting industries such as engineering, machinery and materials, and 2
induced FTE jobs would be created in sectors which provide the goods and services to
meet the consumption needs of the direct and indirect jobs created.
A PLAN FOR ECONOMIC REVIVAL | PAGE 2
INTRODUCTION
4. Enquires have decreased by 50%+ across most new projects and there has been a
corresponding fall in sales conversions.
Contract cancellations and settlement defaults have increased significantly (which
in some markets, members estimate this being up to 25-30%) – in the case of
finished stock this impacts developer cash flows restricting new development, and
in the case of “off-the-plan” sale projects, this will significantly delay new
construction activity at a time of already diminishing supply.
Most of the major financial institutions are now placing more onerous credit
conditions on consumers (especially for self-employed applicants) in order to
manage their loan book risk.
UDIA’s 2020 National State of the Land report indicates that dwellings approvals
across all regions are in decline and with a demand lull at present and lead
indicators all pointing to minimal recovery without intervention for new pipeline
projects, this trend is unlikely to reverse in the short-medium term.
The impacts of COVID-19 are being felt far and wide across the economy and the
property industry is not immune. With some positive signs emerging in the industry in
the six months leading up to mid-March 2020, the industry was experiencing some
much-needed stabilisation moving into a growth phase following on from the
challenges felt over the past 2 years. With the onset of COVID-19 this all changed with
a short period of time.
Member feedback and research published indicates:
INDUSTRY STATE OF PLAY
A PLAN FOR ECONOMIC REVIVAL | PAGE 3
Capital City Dwelling Approvals - 2018 & 2019
5. A PLAN FOR ECONOMIC REVIVAL | PAGE 4
Major home builders order books are relatively solid until the middle of this year
(from contracts signed 6-12 months ago) but then ‘drop off a cliff” from this time
onwards. New home starts are forecast to fall to c.110-120,000 for this financial year
(near lowest on record) well down on the historical run rate of c.180,000 starts that
the industry delivers.
Inner city apartments under construction is now trailing its mid-2018 peak by 30%.
Completions in 2020 are expected to be c.37% below 2017 levels and fall further into
2020 to be c.60% below the peak.
Rents and rental yields for housing have fallen – and are likely to see exaggerated
effects as the concentration of jobs losses in part-time employment takes hold,
posing a further risk to the investor market. This will be further amplified when the
moratorium on tenancy evictions current in place in many states ceases later this
calendar year.
With the timeframe of new projects commencing being extended, low buyer
confidence will likely not commit to a project several years from completion, hence
many more projects will be delayed or abandoned further impacting the already
poor supply in the pipeline for 2022 onwards.
Sydney - approvals down 23% in the 12 months to March 2020, and 43% since the peak in
September 2016
Melbourne - approvals down 8% in the 12 months to March 2020, and 32% since the peak
of June 2018
Brisbane - approvals down 18% in the 12 months to March 2020, and 50 percent since the
peak of April 2016.
Many of UDIA’s developer, consultant and contractor members have already been
forced to downsize their businesses with redundancies, stand-downs and reduced
working hours being common.
Forward estimates of completions through to 2022 (summarised prior to the
impacts of COVID-19), indicate a significate deterioration across all regions.
Capital City Dwelling Completions
6. The current adverse leading indicators is compelling and UDIA believes there is
an urgent need for Federal Government intervention to introduce new housing
stimulus measures to kick start activity and employment and mitigate further
downside scenarios. A significant proportion of the 212,000 direct and over
740,000 direct and indirect jobs this industry employs will continue to be at
risk.
Without this intervention, there is a risk that a severe downturn in housing
construction will add to the economic malaise caused by COVID-19, undermine
the pace of needed recovery place at risk a significant proportion of the 212,000
direct jobs and over 700,000 direct and indirect jobs the industry creates.
Federal Government Actions to date
The Government has been proactive in emergency economic measures over
the past few months with initiatives such as Job Keeper/Seeker, targeted
industry intervention, instant asset write offs and a resolute focus on the health
and wellbeing of the Australian population.
However, most developers are unable to hibernate their businesses and have
not received assistance from JobKeeper and their willingness to invest is now
crucial for the ongoing economic contribution and multiplier of jobs in the
supply and delivery chain.
UDIA applauds these measures which had a significant impact in slowing the
‘free-fall’ of the Australian economy. These include:
A CLEAR CASE FOR IMMEDIATE
FEDERAL GOVERNMENT STIMULUS
Bond market intervention
Interest rate reduction
Lower capital requirements
SME and household lending
Job Keeper
Job Seeker Supplement
Income support
Superannuation access
SME cashflow payments
Instant asset write off
Deduction offsets
Apprentice retention support
Capital Markets & Liquidity
Economic Stimulus
Aviation industry support
Tourism-specific package
Interim IR award reforms
Accelerated infrastructure pipeline
Land tax relief
Waiving payroll tax
Waiving energy and water charges
Accelerated planning approvals
SME grants
Targeted Intervention
State-based
A PLAN FOR ECONOMIC REVIVAL | PAGE 5
7. Given the current environment, UDIA National believes it is now time to move from
the trajectory of economic stabilisation to one of economic recovery with immediate
federally led stimulus to re-kick start the housing market to deliver immediate
economic benefits, which will flow through to a recovery in the medium term.
Without this intervention, the Federal government’s current economic “defensive”
measure will likely need to continue for an extended period costing billions and
adding further to the budget deficit.
A demand stimulus to an industry as wide reaching as housing construction and
development will have a strong and swift economic multiplier on employment and
the economy. As one of the nation’s largest employer, our industry is ready and able to
rise to the challenge.
There is a myriad of actions a Federal government could implement however UDIA
recommends that a focussed and targeted approach rather than a large set of
initiatives that will take time to have approved and implemented is warranted given
the difficult current operating environment.
Stimulus to housing development carefully calibrated with investment in enabling
infrastructure projects – roads, power, water and sewer that can be delivered within
the next 12 months (using the established investment processes for NHFIC) can then
directly stimulate “shovel ready” housing, will enable a pipeline for growth into the
future. This delivers a ‘double dividend’ for government investment with new
infrastructure delivering immediate jobs during the construction phase and then a
pipeline of housing and jobs delivered in the next twelve months.
UDIA has consulted widely throughout our extensive federated structure and is
recommending a targeted range of initiatives that are measurable, tangible and
immediately implementable at the Federal level as well as a series of actions that
should also flow from other tiers of government.
LOOKING AHEAD:
THE NEED FOR ACTION
MAJOR PROJECT ASSESSMENTS
Clearing the EPBC blockages
A STIMULUS FOR IMMEDIATE HOUSING CONSTRUCTION
$4.5BN Housing Stimulus Fund
A FOCUS ON FIRST HOME BUYERS
Expand First Home Buyers Deposit Gap Scheme
IMMIGRATION AT THE CENTRE OF ECONOMIC RECOVERY
Increase immigration levels consistent with health protocols
A PLAN FOR ECONOMIC REVIVAL | PAGE 6
8. A PLAN FOR
ECONOMIC
REVIVAL
Create a sustained
cycle of housing
construction that also
boosts affordability.
Generate immediate
employment
opportunities right
across the supply
chain.
Fast-track investment
in infrastructure and
generate “double
dividend” for
government.
Initiate greater
efficiency in planning
systems and deliver
development activity.
BENEFITS
Direct federal government of a $50,000 consumer new
“Home starter” incentive for dwelling construction
targeting 60,000 new starts in 24 months.
10,000 new slabs down - 30th September 2020;
A further 10,000 new slabs down - end Dec 2020;
A further 10,000 new slabs down - end March 2021;
A further 10,000 new slabs down - end June 2021;
Balance of 20,000 to occur by Dec 2021.
This should not be means tested, rather encourage the
construction of new housing at all levels.
Incentive payable at housing slab stage within stated
timeframes of signing a contract
Split the allocation between capital cities and regions on
a two-thirds to one-thirds basis, and tailored to reflect
local market and geographic conditions.
Prioritise and accelerate investment in enabling
infrastructure projects with $1 billion of Federal funding to
be matched by State co-funding to deliver $2 billion for
roads, power, water and sewer that can be delivered within
12 months, which can then directly stimulate “shovel
ready” housing that provides:
A focus on targeted interventions that will enable new
housing to be delivered now and a pipeline for growth
into the future.
Deliver a ‘double dividend’ for government investment
with new infrastructure delivering immediate jobs
during the construction phase and then a pipeline of
housing and jobs delivered in the next twelve months.
Implement a $500m ‘red tape’ fund (managed by NHFIC)
to reward states and territories that cut major project
assessment regime timeframes in half currently stalling
“shovel ready” housing projects
DETAILS
A STIMULUS FOR IMMEDIATE
HOUSING CONSTRUCTION
A PLAN FOR ECONOMIC REVIVAL | PAGE 7
9. Create a pipeline of
major housing
projects to meet
demand and maintain
economic activity.
Match the
Government’s red
tape reduction
agenda.
BENEFITS
The Commonwealth Government accelerate a series
of deadlines for major housing projects currently
caught in the EPBC assessment regime.
All projects that entered the assessment regime
prior to July 1, 2019, be guaranteed a decision by
July 1, 2020
All projects that entered the assessment regime
prior to January 1, 2020, be guaranteed a decision
by October 1, 2020; and
All projects that enter the assessment regime
prior to June 30, 2020, be guaranteed a decision
by January 1, 2021.
DETAILS
MAJOR PROJECT ASSESSMENTS
Maximise the gains
already made by the
FHB Deposit Gap
Scheme.
Support new housing
construction to boost
employment.
BENEFITS
The Commonwealth Government release a second
tranche of 10,000 places under the First Home
Buyers Deposit Gap Scheme with an exclusive focus
on generating new housing and apartment stock.
The commencement of this scheme should coincide
with the start of the new financial year – July 1, 2020.
Better match the price thresholds embedded in the
scheme to median house prices in each capital city
or geographic zone.
DETAILS
A FOCUS ON FIRST HOME BUYERS
Economy-wide
demand and skills
generator.
BENEFITS
Support Immigration level of 200,000 persons per
annum for FY21 and FY22, recognising the need to:
Apply mandatory 14-day isolation and a rigorous
healthy testing regime to ensure appropriate
protection measures in place.
Focus on incentivising and attracting skilled and
student migration to boost economic output.
Focus on streamlining permanent migration
assessment timeframes and criteria to improve
balance of the proportion of taxpayers and non-
taxpayers given Australia’s rapidly ageing
population.
Ensuring the revised immigration plan is factored
into updates of the National Population Plan.
DETAILS
IMMIGRATION AT THE CENTRE OF
ECONOMIC RECOVERY
A PLAN FOR ECONOMIC REVIVAL | PAGE 8
10. WORKING COLLABORATIVELY
WITH THE STATES
Stimulate demand and
construction, including
jobs and wages up and
down supply chains.
Fast-track investment
in major infrastructure.
Maximise the housing
and land use
opportunities from
infrastructure
investment, including
affordable and social
housing.
BENEFITS
Prioritise and accelerate investment in major infrastructure projects
that can also be leveraged to immediately stimulate “shovel ready”
housing. This would incorporate a Federal and state focus on social
and affordable housing delivery measured against key targets.
Auditing all major infrastructure projects currently underway to
ensure land use opportunities are being maximised.
It will also allow the Commonwealth and State Governments to
scan the Infrastructure Australia Priority List for projects to be
accelerated.
Re-establishing the Asset Recycling Scheme will broaden the pool
of capital available for the Commonwealth and States to seed
investment.
DETAILS
SMARTER INFRASTRUCTURE
Re-emergence of
global capital and
international buyers to
underpin projects as
and activate new
supply.
BENEFITS
Eliminate federal and state foreign investor charges to recapture
offshore capital as the global economy recovers, with a 12-month
review trigger.
Ensure the Foreign Investment Review Board strictly adheres to the
30-day ceiling on applications for exemption certificates for the
purchase of new house-and-land or apartment dwellings.
DETAILS
RE-ATTRACT FOREIGN CAPITAL
Broad economic dividend
from diminishing the
application and effect of
one of the nation’s most
punitive taxes.
Build to rent sector to be
an avenue to deliver
much needed quality
rental stock.
Lower the cost of
housing.
BENEFITS
Remove stamp duty on new home purchases for the next 12 months
to mitigate the impact of this punitive transaction tax.
Incentivise state and local governments to cap developer
contribution regimes at their current levels and place a 24-month
moratorium on any increases.
Balance the MIT regime for Build-to-Rent with a focus on land and
withholding and other taxation incentives to support the emergence
of a strong mix of product in the rental market.
Develop a process for commissioning and identifying the pathway to
longer-term tax reform.
DETAILS
PROMOTING HOUSING INVESTMENT
AND AFFORDABILITY
A PLAN FOR ECONOMIC REVIVAL | PAGE 9
11. UDIA is the development industry’s most broadly representative industry
association with more than 2,500 member companies – spanning top tier global
enterprises and consultants to local governments and small-scale developers.
We have a long history of engaging positively with the Federal Government on
issues critical to the property industry – spanning tax, population, infrastructure,
land use planning and beyond.
UDIA National’s advocacy is defined by our National Council – but informed by a
diverse membership base, extensive network of state councils and committees
and businesses on the frontline of housing development. Our voice is backed by
real experience and quality research designed to support good policy making
and dialogue with governments, oppositions and the bureaucracy.
ABOUT UDIA NATIONAL
A PLAN FOR ECONOMIC REVIVAL | PAGE 10