Economic Perspectives
- A host of economic figures have been released over the past week including the latest national accounts data – the most comprehensive assessment of the Australian economy. So what shape are we really in?
- Economists have been known to put some “spin” on the figures, influenced by their long-held views on variables like interest rates and exchange rates. We don’t have such pre-dispositions – we are more interested in the facts, and more importantly the implications for investors.
- Overall, it’s clear that the Australian economy is in good, but not great shape. The outlook is encouraging with unemployment and inflation at low levels, and China buying up our resources. But the outlook is not without its risks – high oil prices, Middle East contagion (remember the Asian contagion in 1997?), European debt, rising global inflation and a China bust.