From Bank of America Merrill Lynch on Australian GDP growth and implications for the Reserve Bank of Australia
This from BoA/ML's Global Economic 2016 Year Ahead research note ... and for before the blockbuster employment report today! (But, errr, after the previous month's also blockbuster employment report :-D )
2015:
- Australian economy has had been "battered" by sharp falls in mining-related capex commodities prices
- Says the AUD fall is helping the economic transition
- Also mention Turnbull's ascension to PM and subsequently more stable political environment boosting sentiment
2016:
- Continuing challenges from the end of the resources boom
- And new challenges to emerge
- But anticipate non-resources economy bottomed in 2015, and now will improve in 2016
- Says GDP to grow from 2.5% (in 2015) to 2.8% in 2016
- Household spending to edge up
- Employment growth to continue along with low wage growth
On the RBA:
- They should gradually consider a rate rise
