19 Jun Australian growth will be constrained – but here’s 9 reasons why recession is unlikely
Key Points:
- Australian growth is likely to be weak over the next year or so and this will prompt further monetary easing and fiscal stimulus.
- However, several positives suggest recession is unlikely: the current account deficit has collapsed; the $A helps stabilise the economy; the drag from falling mining investment is over; there is scope for extra fiscal stimulus; infrastructure spending is booming; there has been no sign of panic property selling; economic policy remains sensible; population growth remains strong; and the RBA can still do more.
