In a front-age article, the Australian Financial Review features the Reserve Bank of Australia (RBA)’s John Edwards saying the mining boom was overrated:
- Says the investment phase of Australia’s mining boom wasn’t as big as many think
- Rebalancing won’t put the economy into recession
- Said the boom contributed around 3% to GDP since 2003
- The reason it is “important is that it influences the size of the challenge in adjusting to the ebbing of the investment phase of the boom. If it wasn’t quite so big in the first place, it’s going to be much easier to adjust than otherwise. And it’s an adjustment we’re making. We’re a very long way from having a recession, let alone a depression”
The quote is from Edwards’ new book “Beyond the Boom”.
The Review article appears to be ungated: Resources boom ‘overrated’, says RBA’s John Edwards.
Its worth a read, although Australia haters bears won’t like it:
“Australia has not been living in a fool’s paradise during the mining boom, it has not been complacent, it has not wasted its endowment, and it has not evaded recognition of some fundamental shortcoming.”
