Seven reasons for optimism on the Australian economy

The mostly gloomy debate around the Australian economy often gives the impression we are in a constant state of crisis. But economic growth is pretty good, the economy has rebalanced without the ("inevitable") recession, the worst of the mining bust looks to be behind us, public infrastructure spending is ramping up, consumer and business confidence are around long term averages, share market profits have likely bottomed and Australia stacks up well on social considerations. While the RBA may still need to cut rates again to help push inflation back up and keep the $A down, there is good reason for optimism regarding the overall Australian growth outlook making our call for one more rate cut a close one. Shares are due a short term correction with the next few months seeing various global event risks, but the broad trend is likely to remain up. In the latest Oliver’s Insights, I offer seven reasons for optimism: (VIEW LINK)