The worrying state of our economy
Australia’s economy jumped off the sheep’s back and into an open-cut mine some time ago, but the past year saw the slide of the resource boom, reinforcing the fact that when the giant Chinese economy sneezes, the world thinks it has Ebola. A fall in China’s growth figures means lower demand and tumbling prices for raw materials – a damaging hit made worse by a new, global supply flood of commodities like iron ore. Miners are actually tightening their belts, even if it doesn’t look to be the case with Gina Rinehart. Our own growth figures have done nothing to soothe the insomnia of economists, with a figure of just 0.2 per cent for the most recent quarter, rated as perilously close to a fail. The hated R word – recession – has also been raising its head, however one plus (for anyone older than 35 and already on the ladder) is the local property market continues to rise, while the precipitous fall in the dollar is actually good for international competitiveness.
THE GQ INSIGHT: The departure of Abbott and Hockey prompted an instant boost in consumer and business confidence. As for that Perth investment property, sell it (if you haven’t already).