HSC Economics – Australian Economy Recession Free For 23 Years!

Sep 8, 2014

Good morning budding Economists,

Australia last week posted 23 years of continuous Economic Growth(ie – without two consecutive quarters of contraction). Well done Australia! The big question though is can we continue this run with a slow down in mining from a slowing Chinese Economy??

While our Economy is slowing according to latest figures the RBA is in a dilemma with rising unemployment and rising house prices. If the RBA drops interest rates to try and stimulate employment and growth it could fuel further house price growth and with house prices at a 12 year high this has implications for inflation rising above the RBA’s target of 2 – 3%.

Click on the image below to watch a 2 minute video on recent Economic Growth figures or click this link for a great summary from Bloomberg. 

HSC Economics - Economic Growth

 

 

 

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