Oliver’s Insights – The Australian economy – seven reasons not to be too gloomy
Key points are as follows…
· Australian economic growth came in at a stronger than expected 0.9% in the March quarter, but remains subpar on an annual basis at 2.3% and demand remains very weak.
· More help is likely required via a lower $A (expect to see $US0.70 by year end) and maybe another rate cut.
· Record low borrowing rates, rising wealth levels, lower petrol prices than last year, relatively high household saving, the lower $A, rising export volumes and better management of the last boom are reasons not to get too gloomy on Australia.