Aus. Economy Will Be Soft for a Few Years: Callow

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Dec. 4 (Bloomberg) –- Barclays Chief International Economist Julian Callow discusses Australia’s GDP numbers and what he thinks the central bank needs to do to spur growth as the mining investment boom wanes. He speaks to Anna Edwards and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

More to spurn growth as the mining investment boom wanes?

We think it will be a multiyear contraction in terms of mining investment in australia.

They had reached a very strong gdp moving into double digits.

We think the australian economy will be soft in the next few years on account of that but at the same time, the central bank wants to rebalance the economy there which means encouraging other industries in the best way to do that is to have a weaker currency.

It seems to must -- it seems to us they are not to must about being on the stronger side right now.

The big challenge is really in terms of composition and structure with the economy.

30 seconds.

The brazilian economy is contracting.

What's going on?

It shows the determination of the central bank to keep its inflation fighting credibility intact.

They still have concerns about inflation and it does appear somewhat crazy to us where you have 10% policy rates and an economy that is contracting.

We're at the end of this tightening cycle but the central bank is really sticking to its guns in a very serious way which shows the robustness of the institution and the underlying economy.

Julianne, thank you, joining us from barclays.

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