IMF: Australia's housing market contraction is worse than first thought

In an interview with the Australian Financial Review (AFR), the International Monetary Fund (IMF) Lead Economist expressed his take on the Australian housing market contraction.

Key Highlights:

“Australia's housing market contraction is worse than first thought.”

Leaving the economy in what he called a "delicate situation".

Boosts the need for faster infrastructure spending and even potential RBA rate cuts.

"I think given where the economy is now, that this growth impetus comes forward is important in the current cyclical setting.”

“The ambition [on infrastructure spending] is in many senses welcome."

"The housing market downturn is sort of sagging on the demand side, so you want to have other demand sources pulling."