Rubbery figures – is the economy really in good shape?
Australia’s latest national accounts show growth in our economy was just 0.2 percent. The Australian Bureau of Statistics says reduced mining and construction activity, coupled with a decline in exports were the main factors to the slowdown in economic growth. Treasurer Joe Hockey insists the fundamentals of the economy are in good shape and points to figures showing we performed better – slightly – than other commodities based economies like Canada. The government is sticking to its script that cutting the mining tax, the carbon tax and cutting red tape will see the economy pick up. They say business confidence is up, retail sales are up and unemployment is coming down. But Jon Tyler from the UTS Business School thinks the government’s figures might be a little …rubbery.
Story features: Jonathan Tyler, Deputy Head, Accounting Discipline Group, UTS Business School
Image credit: tradingeconomics.com
