Reasons not to be gloomy

Apart from the reality of growth holding up despite the mining boom ending several years ago, there are several other reasons not to be gloomy on Australia. 1) Consumer spending is growing at 2.9% supported by borrowing rates at generational lows. 2) The fall in the $A is a big positive for manufacturing, tourism, higher education, services, farming and mining. 3) Australia managed the boom better than it has in the past when booms led to inflation or trade deficit blow-outs or both. 4) While growth in the resource-rich states of WA and NT has crashed, it’s strong in the population-rich states of NSW and Victoria. 5) By mid next year, mining investment as a share of GDP will have fallen to around 2% from its boom-time peak of near 7%, meaning that the mining investment boom's drag on growth will largely be behind us. See more in the latest edition of Oliver's Insights: (VIEW LINK)