FIRE sector vampire finally runs out of credit blood

Thursday 7 June 2018

Wednesday’s national accounts release for the March quarter confirmed that Australia’s FIRE economy – Finance, Insurance and Rental, Hiring & Real Estate Services – ceased bleeding its host, with its share of the Australian economy finally retracing, down 0.1% from its June 2017 high to 11.9%:

That said, since financial markets were first deregulated in the mid-1980s, the FIRE sector has still grown at roughly twice the pace of the rest of the economy, sucking the life out of the productive sector:

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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.