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The Great Aussie Growth Comeback May Not Be So Great After All

  • China’s resource binge has emboldened the Australian consumer
  • But still few signs of meaningful private or public investment

Australia’s smashing growth may not be quite as good as it seems.

It’s clear that China’s renewed resource binge has brought back the good times for its commodity-driven economic satellite, emboldening Aussie households to ease up saving and ramp up spending. And the outlook for the world’s No. 2 economy looks like it will remain good for some time: factory gauges are stronger and the Communist party this year holds a twice-a-decade reshuffle of senior leadership posts, so it must.