Wednesday, April 05, 2006

Full-steam for Aussi economy

The RBA announced yesterday that it would again keeps its cash rate at 5.5%. Its excellent Chart Pack gives a feel for what is happening in the Australian economy.

Highlights:

  • Australia’s major trading partners are growing faster than the rest-of-the-world.
  • Australian growth slowed a bit during 2005 but is still strong.
  • Business investment has usurped dwelling investment as the driver of the sustained boom in the Aussie economy.
  • Unemployment rates close to record lows, labour force participation growing strongly.
  • Current account deficit of 6% of GDP but reducing. The trade balance improving.
  • Underlying inflation low at 2.5%.

Its a very positive outlook.

2 comments:

Jan said...

Yes, however I would like to see the 'home loan affordability' picture to be more optimistic... (otherwise we may have to move into your place Harry...). And sadly, Europe continues its uninspiring performance.

hc said...

Jan, I will post on housing prices soon with reference to women in workforce and fertility issues. Getting ideas together.