Goldman Sachs: A new factor impacting the outlook for growth in Australia

Goldman Sachs: A new factor impacting the outlook for growth in Australia. In providing his 2015 outlook commentary for Australia Tim Toohey, head of Australian economic research in Global Investment Research at Goldman Sachs, points to impending drought conditions as an additional drag on the economy. Toohey says the aggressive income shock as a result of a downturn in the commodity complex, deterioration in the mining investment outlook and a fiscal adjustment to be pushed through in 2015 are three well known factors that will drag on GDP growth. He adds that the likelihood of drought in Australia has increased which would typically lead to a .5% reduction in growth forecasts. Toohey reduced his growth expectations from 2.3% to 2% at the end of 2014. Further detail on his expectations for 2015 including where he does see a bright spot in the economy is available in this video: (VIEW LINK)