End of mining cliff draws near

Monday, 30 October 2017

On Friday, the ABS has released the annual national accounts to June 2017, which reported that overall capital expenditure (“Gross fixed capital formation”) was flat in 2016-17, but fell to 24% of GDP (versus 25% of GDP the year prior):

This overall fall in capital expenditure was driven by mining investment, which fell by 25% in 2016-17 to 3.3% of GDP – down from 4.5% of GDP the year prior and from a peak of 8.9% in 2012-13:

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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.