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.