Goldman Sachs has released a 50-page outlook for Australia 2014: “Australia, the odd one out”
- They forecast just 2.3% growth
- They say the “mining investment cliff” will be steeper than the market and budget forecasts expect
- Employment to be more subdued than expected
- Household incomes moderating
- Government spending will be cut further
- The continue to expect high house prices
- These combine to increase downside risk to 2014 growth prospects
- Also, further deterioration in the Australian budget/fiscal position
- Non-mining investment will not replace the drop off in mining investment
- Financial conditions are loose and expected to remain so
More details as I get them
ADDED – BI Australia have more
