The Australian economy set a world record in March 2017. Recession free for nearly 26 years. Around the same time, Australian households also established a record…the most indebted in the world.
The Australian economy was a major beneficiary of China’s decades long economic transformation. Chinese demand for resources led to a mining boom that peaked in mid-2012.
When the mining boom collapsed, the Australian economy was thrown a lifeline by the RBA…in the form of ever lower interest rates. Australians were encouraged to borrow to keep GDP growth positive.
While this has worked to an extent, it’s also lead to Sydney and Melbourne property markets becoming amongst the most expensive in the world.
Australian Economy News, as it comes
In Markets & Money we work to connect the dots on the Australian economy to give you a clear picture. And part of that picture is connecting record economic growth with record debt, and record home prices.