An interesting post on FT Alphaville (I think if you register you can read it free): Is the Australian model in trouble?
It talks about Australia’s 2 decades without a recession but asks if the luck is running out …
- lack of net job growth in the mining sector over the past few years
- overall domestic economy has been slowing down
- grim picture outside of iron ore and copper exports
- weak economy and deteriorating labour market have led to a slowdown in wage growth even as consumer price inflation has been accelerating
- Australian households are already among the most indebted in the world and have managed to avoid shrinking their balance sheets so far, although they have not managed to increase their borrowing much, either. The Australian government’s recent push for austerity probably does not help.
It goes on, and its not a happy read (for Aussies …
)
