The mining states’ boom and bust

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By Leith van Onselen

For years, the resources boom was the gift that keept on giving, driving the Australian economy forward through the post-Global Financial Crisis period, helped in no small measure by the huge surge in mining-related capital expenditures (capex).

Now, mining capex is in free fall (see next chart), causing clear headwinds for the mining jurisdictions of Western Australia, Queensland and the Northern Territory.

ScreenHunter_9165 Sep. 02 14.14

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.