Sydney’s biggest builder is warning that Australia is heading for a recession without urgent government action. Meriton founder and billionaire Harry Triguboff claims interest rate rises won’t fix inflation, and says the only way out of the housing crisis is up.

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Meriton founder, Harry Triguboff, has issued a stark warning about Australia’s economic future, stating that the country is on the brink of a recession. Triguboff, an influential figure in the Australian property market, has raised concerns over various factors that could potentially lead to an economic downturn.

In a recent interview with 7NEWS, Triguboff voiced his apprehension about the high levels of household debt in Australia. He highlighted that Australians are burdened with mortgages and seek additional loans to sustain their lifestyle, which could ultimately have negative consequences.

Triguboff’s concerns are not unfounded, as Australia has the second-highest household debt-to-income ratio in the world, trailing only Switzerland. With interest rates at record lows, there is growing apprehension that any increase in rates could lead to financial distress for many households.

Another factor that Triguboff attributes to the potential recession is the decline in immigration due to the COVID-19 pandemic. Immigration has been a significant driver of Australia’s economic growth for years, fueling demand in various sectors such as housing and retail. With closed borders and limited overseas migrants, the economy faces the risk of reduced consumption and decreased demand for properties.

Moreover, the property market, which Triguboff built his fortune upon, could see a significant decline. He predicts that an oversupply of apartments and weak rental markets in major cities could lead to a drop in property prices, further exacerbating the economic downturn. Triguboff urges caution and rationality in property investment during these uncertain times.

Beyond these immediate concerns, Triguboff suggests that Australia’s heavy reliance on China for trade could also result in long-term economic consequences. With escalating tensions between Australia and its largest trading partner, there is uncertainty regarding the future of this crucial economic relationship.

Triguboff’s warnings come at a time when many experts and analysts have also expressed concerns about Australia’s economic future. The unprecedented stimulus measures implemented during the pandemic, while necessary to support the economy, have also raised questions about the potential long-term impacts, including rising government debt and inflation.

However, it is important to note that Triguboff’s warnings should not be taken as indisputable truths. Economies are complex and subject to various factors, making predictions challenging. While the concerns he raises are legitimate, they should be considered alongside other expert opinions and economic indicators.

The Australian government and policymakers will need to tread carefully in the face of these potential risks. Implementing prudent economic policies, diversifying trade relationships, and addressing household debt concerns will be critical to mitigate the risks and prevent a recession.

As with any economic prediction, time will ultimately reveal the accuracy of Triguboff’s warning. For now, it serves as a reminder to remain vigilant and proactive in assessing and addressing potential economic challenges, ensuring the country’s financial stability and growth in the years to come.