Timely increases in key spending components of Australia’s economy have kept growth surprisingly strong, but the juggling act looks set to become precarious. When the latest GDP report for Q2 2016 is released today it is almost certain to show a positive quarter-on-quarter change as well as an annual growth rate around 3% or more. Australia’s GDP growth will be among the strongest in developed economies and it will also mark quarter of a century of continuous economic expansion. The most recent two years of this long economic growth story is perhaps the most remarkable as it has occurred against the backdrop of a collapsing mining investment spending boom and a very sharp fall in Australia’s terms of trade in turn causing a fall in real net national disposable income. Despite this adversity other spending categories – housing activity; household consumption spending; and exports – have risen to keep the economy growing reasonably well. Continue below