IMF says Australia's housing market contraction leaving economy in a "delicate situation"

An interview with a IMF lead economist for Australia in the Australian press, Australian Financial Review

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

For AUD traders, could well be worth a read, link to the AFR, may be gated

ScoMo and the IMF