The surge in the terms of trade explains some of the resilience of Australia’s economy as it has probably encouraged the government to spend more money than it would have done without soaring mining tax revenues. The key point though is that Australia’s economic performance looks far less impressive once we account for the recent surge in the population. Indeed, we expect the RBA to start loosening monetary policy in August, earlier than most anticipate.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services