The Australian currency is falling and by doing so is perhaps doing good to the economy which is under pressure from falling commodity prices and slowing China. Chinese growth being slow might affect / has already affected Australian assets adversely. Latest reports even suggest that economic growth has slipped from an annualised pace of 3.6 per cent to 1.6 per cent.A year ago the average quarterly unemployment rate was 5.8 per cent, but hit 6.2 per cent in the December quarter, the highest in 12 years.
N et foreign debt is estimated at about 55% of GDP.
With unemployment at 6 % and current account at -2.8 %, Australia is under pressure.
Views expressed without any risk or responsibility.
Output growth of about 3% is expected for 2014 and 2.5% in
2015.
House prices have reportedly grown by about 10% over the
past year. Construction activity has been spurred by both speculative element
and overseas growth inspired demand. Strong prudential regulation help but a concentrated financial sector raise concerns about competition.
The young Australians seem to need to work even more: with demographic profile indicating an ageing population. The 15-64 is falling and the 65 +is rising to over 15 %. This has productivity concerns.
OECD estimates are as follows:
|
|
AUD bn.
|
2012
|
2013
|
2014
|
2015
|
2016
|
|
GDP
|
1 452.8
|
3.6%
|
2.4 %
|
3.1 %
|
2.5 %
|
3.0 %
|
Source: OECD
The latest Economic Survey too backs up that expectations are of a slowing Australia.
Economic Survey data
for Australia
|
2.9
|
2.8
|
7.3
|
2.2
|
3.3
|
2.6
|
-5.8
|
7.4
|
4.1
|
2.6
|
|
Australia
GDP
FY 2013/14
%
|
Australia
GDP
FY 2014/15
%
|
China
GDP
Year to Dec
2014 %
|
US
GDP
Year to Dec
2014 %
|
World
GDP
Year to Dec
2014 %
|
Household
spending
Year to Dec
2014 %
|
Business
investment
Year to Dec
2014 %
|
Housing
investment
Year to Dec
2014 %
|
Nominal
GDP
Year to Dec
2014 %
|
CPI and wage
price growth
Year to June
2015
|
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