Australia's 3-speed economy

[amdfangirl]

New research shows the Reserve Bank is faced with an economy that is running at three different speeds.

The Commsec quarterly State of the States report shows resource-rich Western Australia is the country's standout economy.

The report measures factors such as retail spending and housing against decade-long averages for each state and territory.

Behind WA are Victoria and the ACT, which are both benefiting from strong housing activity.

The remaining five states and territories are in third place.

Commsec's chief economist Craig James says the three-way split makes the RBA's job of setting interest rates quite difficult.

"Western Australia is in a class of its own, and you can't set policy on the basis of Western Australia," he said.

Commsec says the Reserve Bank will need to cut interest rates further this year to stimulate consumer activity in the broader economy.

http://www.abc.net.au/news/2012-01-23/australia-running-on-3-speed-economy/3787232?section=qld

*sniffle* my state suuuucks!

 

[Reynod]

But within WA there are sectors that are suffering badly.

We are propped up by the mining, and oil and gas sectors, and to a lesser extend, the process manufacturing sector.

The housing is not doing that well ... the stats on that area are dodgy as hell.

If housing was doing so well how come apprentice numbers are down?

I don't trust any data from the HIA.

WA's retail sector is down too.

There is high youth unemployment here in many areas too.

 

[amdfangirl]

I wish Labor wasn't so intent on returning to surplus. I wish more money was spent on our social problems...

Without the prop-up, our country sucks. Problem is if you say that the average income is $1n out of three people and only 1 person makes $3n and the rest are unemployed etc. that's not good, and I think that's how Australia sees itself.

 

[JAYDEEJOHN]

Race to the bottom, lowering interest rates

 

[Pyree]

That is what happen in China AMDfangirl. Only the rich people in the cities are getting rich. Poor people in the city and the rest just don't get any better.

If this continue, people in Australia will soon go to WA for jobs (much like migrant workers in China). When that happens, I will see you in Perth reynod.

 

[amdfangirl]

Well there goes my dream of being employed by a graphic design company and living in the middle of Tasmania. 😀