Services are close to filling the gap left by the mining boom but the Australian dollar remains a major stumbling block, according to a paper from Capital Economics.
…This growth has been critical in counterbalancing the drop in GDP growth coming from the plunge in mining activity, said the paper.
“But unless the dollar weakens much further, the support from services exports may soon run out of steam.”
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
Services are close to filling the gap left by the mining boom but the Australian dollar remains a major stumbling block, according to a paper from Capital Economics.
