Business

Top economist says the future’s bright

Peter Holt

DESPITE the negative reports from Europe, the Australian economy has continued to perform well thanks to low interest rates, high dollar values and the resource industry.

The main driver of growth for the country has been the large increases in mining-related investments, according to BIS Shrapnel's chief economist Dr Frank Gelber.

"Despite recent headlines to the contrary, commodity prices remain high, and mining-related investment will continue to expand over the next two years as projects currently under way are completed," he said.

"Furthermore, export volumes are starting to grow strongly as the various mining projects enter their production phase.

"Also supporting the Australian economy is increased household spending. Household spending growth has recovered since the GFC, underpinned by relatively low unemployment and rising incomes.

"Much of the increase in spending had occurred overseas, as the high Australian dollar encouraged Australian tourists to increase their spending abroad and discouraged foreign tourists from spending in Australia.

"However, over the past six months has been clear signs that retail turnover in Australia has finally started to recover."

The building industry had remained under pressure reflecting low levels of private investment and the winding-down of the Federal Government's post-GFC building stimulus package.

This had had a flow-on effect to other industries such as legal, financial and real estate services, Dr Gelber said.

"A modest recovery in dwelling building from late last year should breathe some life into these industries, supported by below-average interest rates," he said.

"We will see a broadening of investment and growth beyond mining."

Topics:  economy, live here love here




Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Residents awoken by road rage "demolition derby"

Police generic, crime scene.  Photo Tessa Mapstone / South Burnett Times

Police called to Raceview following violent road rage incident

Family mourn war veteran who died in Ipswich house fire

Vietnam war veteran Maurice Sutton was killed in a house fire at One Mile on May 5, 2016.Photo: Contributed

Horrific discovery inside One Mile home early this morning

Attacking duel ideal for Spirit’s promotion bid

No Caption

Top three battle at right time for Goodna-based team

Latest deals and offers

Pie shop re-branded

Paul Pisasale enjoys a pie at the Platinum Pie Group.

Paul Pisasale enjoys a pie at the Platinum Pie Group store in West Ipswich with...

Family of fire victim talk to media

Police at the scene of a fatal house fire in Ipswich.

Family of Maurice Sutton -who was killed in a One Mile fire on Thursday morning...

Blake Lively Film Shot on Gold Coast

Blake Lively in The Shallows.

New trailer for shark thriller The Shallows starring Blake Lively.

Demand for acreage lots pushes up property prices

Property values in Cooroy have increased 25%

Property values jump in Cooroy and Peachester.

How a sacked real estate agent made $725k in four months

Agent is now under investigation by the industry watchdog

RBA warns of future apartment oversupply

Toowoomba: Crest Apartments and Burke & Wills, Ruthven Street ( view from Neil Street) Photo Bev Lacey / The Chronicle

RBA says oversupply of apartments poses risk to household finances