SQM: House price boom won’t save economy

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In an interview with CNBC, SQM Research’s managing director, Louis Christopher, claims that Australia’s authorities are hoping the rise in Australian dwelling values will feed through to greater confidence in the economy.

However, Christopher has “serious questions” about that view because the housing recovery is not creating more jobs. Instead, unemployment is set to rise, driven largely by the crash in dwelling approvals.

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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.