I just read this article and it says that we could be headed for a recession in 2014 if the following doesn’t occur: unless the dollar and interest rates fall and major labour market reforms are introduced.
Is it true that we can’t keep on at this pace. This economist from the website yahoo7 thinks so?
He makes a good point that we can be doing some preparations to try and improve the non-mining sectors while the mining sector is still strong, so when the mining sector starts to slow we should be ok. This sounds like some good advice.
Hopefully the Gillard government will make some good fiscal and economic decisions and legislation to as Saxo Bank chief economist Steen Jakobsen recommends, to reduce some indirect taxes are necessary to reduce unit costs and making businesses more competitive.
The RBA might have to cut rates further to stimulate growth in early 2013, and help to slow the appreciation of the Australian dollar.
He makes an important point that if it is an election year, which we think it will be, will the Gillard Government focus on the good of the economy or re-election?