The South China Morning Post carries this article: Australia economy counts on post-election confidence
- Says Australian business wants ‘certainty’ (in the form a clear win for one side or another after 3 years of minority government)
It quotes economist Paul Bloxham of HSBC:
“It’s clear that uncertainty over tax and regulations has been a hindrance to investment. Just the thought of some certainty should lift business confidence and give a timely boost to the economy.”
It hits on the themes of interest to the markets:
- Want to see a return to majority government
- Either side will pretty much do as policies are much of a muchness (though business tends to favour the Liberal coalition)
- Economy should get a confidence boost after a majority win, even if only for the short term
- Mining investment ‘rolling over’ and ‘transition’ to growth of other sectors is the challenge for the Aussie economy regardless of who wins
The election is on September 7, the current opposition is ahead in the polls
