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Home renovations boost GDP growth

GDP has increased in the last quarter with home renovations contributing to the economic growth.

The ABS released the Australian National Accounts yesterday which reported that GDP increased by 0.8 per cent during the quarter to be 1.8 per cent higher than a year ago.

โ€œSolid growth in home renovations activity contributed to a pick up in the pace of economic growth in the June 2017 quarter,โ€ Housing Industry Associationโ€™s senior economist. ย Shane Garrett said.

โ€œTodayโ€™s figures indicate that renovations activity grew by 2.2 per cent during the June 2017 quarter, eclipsing the contraction of 0.8 per cent in new dwelling construction over the same period.

โ€œThe contraction in new dwelling construction is from the record highs achieved in 2016 and a large backlog of work is still to be completed.

โ€œWe expect this decline in new dwelling construction to continue for a number of years.

โ€œSustained growth in renovations activity will be a welcome antidote to the substantial downturn in new home building that we predict to unfold until 2019,โ€ Mr Garrett said.

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Azal Khan

Azal Khan was a in-house features writer for Elite Agent Magazine.