Macquarie Bank on Australia’s “income recession”

By Leith van Onselen

Macquarie Bank has released a good report today on the “income recession” afflicting Australia as the once-in-a-century commodities boom unwinds, which is dragging down national income despite reasonable growth in headline GDP:

Tailwinds that have boosted demand in Australia over the past few decades are set to ease, or reverse course. The end of Australia’s terms of trade boom is set to drag on income growth, resulting in a weak demand environment at a time when structural headwinds to growth – particularly demographics – are beginning to be felt…