In the latest Oliver’s Insights, Dr Shane Oliver looks at a recent call for a collapse in the Australian economy.
The key points are as follows:
- The Chinese economy is not about to collapse and isn’t likely to be at “peak commodity demand”.
- The failure of the Australian economy to crash after the end of the commodity price boom and mining investment boom early this decade highlights that it’s a lot more diversified than many give it credit.
- The housing boom in Sydney and Melbourne has not been built on the China boom – in fact it has had more to do with strong population growth and the end of the mining boom.
- And we don’t just make good “flat whites” – why does Chai tea brewed with soy never get a mention?