From The Australian:
AUSTRALIA and New Zealand Banking Group chief executive Mike Smith has warned the Australian economy will remain soft in 2013 which could lead to an increase in bad debts, but said he believes the global economy will be shielded from a ‘European armageddon’.
…Mr Smith said while the result was good, 2013 would be a tougher environment for the bank.
“There’s no question that the global economy is struggling, with a number of European countries experiencing a contraction,” Mr Smith said today.
…Mr Smith said the bank remained optimistic about China’s economic development, despite some “commentators having a glass half empty” view of the world’s fastest growing economy. ANZ predicts China will grow by 7.5 per cent to 8 per cent in the year ahead.
I guess he means me. If China grows at 8% it means nothing if it’s based on declining commodity intensiveness. Anyway, this is certainly a more realistic take on 2013 that that being put forward by the managers of our tax revenue, although ANZ’s forecast for 2.7% Australian growth is still above what I expect for 2013.
