- Treasury’s top economic forecaster has warned that Australia’s nominal economy – what the nation is actually paid for what it produces – will grow below the historic average over the next two years, increasing pressure on the budget.
- declining terms of trade to weigh on nominal growth
- Treasury secretary Martin Parkinson added that the high dollar was another factor exacerbating the impact of the falling terms of trade.
- Dr Gruen said non-mining drivers of growth included consumption and dwelling investment, where there are “tentative signs of improvement.”
- He said non-mining investment has been held back by the high level of the exchange rate
Australian Financial Review: Growth to slow: Treasury (gated – a news search may turn up something)
