The Australian Economy - 5 reasons growth will continue

Please click on the link below to view Shane Oliver's views on economic growth in Australia.

Key points raised are :

  • The Australian economy grew 2.4% through 2017, good but well below potential given high population growth
  • There is good reason to expect growth to continue and pick up a bit due to 
    • the drag from failing mining investment is nearly over
    • non-mining investment is turning up
    • public investment is strong
    • trade should add to growth 
    • profits are rising
  • But growth is likely to be constrained to just below 3% this year and underlying inflation is likely to remain low
  • We don't expect the RBA to start raising rate until 2019 (we were looking for a hike late this year). Australian shares are likely to move higher by year end, but to continue under performing global shares.