commonwealth

from what i understand, china contributes 3% to australian GDP through exports, that's because the australian economy is not 100% exports only.

nandnor

But a country's ability to import relies on ability to export. If exports fall off, Aussies wont be able to consume as much foreign goods any more. This is also why the EU and US economies are so bleak looking into the future - the policymakers keep trying to motor up internal demand instead of focusing on productivity and exports, so their economy stays stagnated.

Pit Bull.

3.7% growth. I don't think the UK has had figures like this in the last ten years.

commonwealth

imports are calculated as negative contributor to GDP. nothing wrong with stimulating strong internal demand if extermal is hopeless.

nandnor

importing goods and consuming them is largely the end goal of economic activity. so if exports drop, it is harder to achieve end goal. Stimulating demand doesnt increase exports so it doesn't help achieve the end goal.

commonwealth

yes but if by a depreciating currency (because of weak exports) the local produce becomes more competitive is it not possible to replace some if not all the imports?

and there are still available cushions to australian policy makers: low budget imbalance (higher ability to fund stimulus), high interest rates (can be dropped to stoke demand) and high AUD (can fall
and mitigate the effect of lower export volumes with higher/stable value in AUD terms, and possibly support domestic production and tourism).

i am still confident in australia relative to the world.

kips

Yes but everything else has gone up massively such as the cost of electricity, petrol, water, house insurance, car insurance, rates, Internet etc so the fact that the price of eggs and milk is a bit cheaper makes sod all difference to the overall cost of living.

Pit Bull.

Australians are really struggling in their humongous houses! Driving their big 4x4s, that's why they are so thin and fit, they can't afford to eat, Oh wait a minute, aren't they one of the fattest nations in the world? Doesn't add up somehow.

Zen10

The contraction in mining is going to hit WA like a brick in the face. What worries me is that most of the uranium is in SA, and that could mean a boom here. Olympic Dam might mean we are spared though - for now.

BadgeIsBack

Seems to me we are on the brink of supermarket price 'war', or at least the signs are encouraging.
There has been progress.

ozzieeagle

It's here already Badge.... Aldi started them off, The big boys responded by importing UK managers, who then started to really slash the prices of certain items... didnt you notice things like Olive Oil being brought down by 50 pct permanently, heaps of cuts like that.

My football going mate is bemoaning the fact actually, as he is a Woolworths manager and they have to move around far more pallets of goods = equates to far heavier work, to make the same amount of profit... which means he actually has to do a lot more physical work to save on staffing v costs.. They are far less profitable than they were in 2009. I tell him, Aldis are still cheaper, and even he shops there... has to go to one a couple of suburbs away as it's not good for him to be seen in one.



The chains are even buying up suppliers and farms.... just like the UK.

renth

About time. Quite a few industries here that could benefit from that.

Tramps_mate

http://uk.finance.yahoo.com/news/tim...190412954.html

Hmmmmm

kips

Not in recession but the following doesn't bode well.Queensland government announced in its budget this week that 14,000 public sector jobs are being cut.

Here in WA mining giant FMG (Fortescue Metals Group) is slashing 1,000 jobs because of the big drop in the price of iron ore and BHP Billiton, the world's biggest mining company,shelved $50 billion worth of projects including the outer Harbour project at Port Hedland which has meant job losses in WA.

commonwealth

i didnt realise the whole Australian economy is comprised of 100% exports of iron ore to China?