RBA gov Lowe speaking at A50 Australian Economic Forum dinner 9 Feb
- expects GDP growth of 3% in 2017 and 2018
- GDP contraction last year was temporary
- higher terms of trade, sharp ramp up in LNG exports to support growth
- estimates drag on economy from falling mining investment is about 90% finished
- investment lending for housing has picked up
- Australia has benefitted greatly from free trade globally, would suffer if that reversed
Another nod to the increasing uncertainties of trade rules.
Upbeat opening remarks, with definitely a glass half full.
"You find a country that is prosperous and wealthy; Australians enjoy a standard of living that relatively few people around the world enjoy.
You find a country that has grown consistently for some decades now, despite a pretty volatile global environment. Australia's year-ended growth rate has been in positive territory since 1991.
You find a country that has a strong and stable banking system. We have deep and liquid financial markets. The public here question why banks are so profitable, not why they performed so badly during the global financial crisis.
You find a country that is well placed to benefit from growth in Asia, not only because of our natural resources base, but also because of stronger demand for our food and a wide range of services.
You find a country with a growing and diverse population and one that has a high degree of social cohesion. Our population has recently been growing at around 1½ per cent a year, and around 40 per cent of us were either born overseas or have one parent born overseas. This brings a dynamism that isn't there in countries with stagnant and less diverse populations.
You also find a country with strong public institutions and whose economy is resilient and flexible. We have a demonstrated capacity to address our problems and to adjust to the changing world that we live in. In the past decade, our flexibility has meant that we have been able to maintain economic stability through the biggest investment boom in the resources sector in more than a century, and the subsequent unwinding of that boom."
Full speech on the RBA website here.
AUDUSD totally unimpressed and remains at
0.7626 in tight range still.
