From the speech by Philip Lowe, Deputy Governor titles “Investment and the Australian Economy”, given to the CFA Melbourne Institute’s Annual Investment Conference
- Further depreciation of A$ helpful in rebalancing economic growth
- Low interest rates having an impact, has further to run
- Pick up in non-mining investment is needed for the economy to return to trend growth
- lower $A, better business confidence, low interest rates should help lift non-mining sector
- Lowe sees high, single-digit growth rate in non-mining investment over the enxt few years
- Exports set to grow strongly, large LNG projects coming on line
- Modest rise in residential construction currently underway is welcome
- Substantial decline in mining investment likely over the period ahead as projects are completed
- Not surprised if mining investment, relative to GDP, falls by 3% or more over coming years – decline is manageable, but needs further rebalancing of economy
Link to full text of speech: Investment and the Australian Economy
