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
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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.