There’s nothing like getting free of BREE. From the former chief economist and head of the Australian Bureau of Resources and Energy Economics, Quentin Grafton:
…says the economy faces a painful downturn in 2015 as a property crisis in China accelerates the biggest hit to Australia’s export income in more than two decades.
He said falling prices for coal and iron ore, a slump in business investment, an overpriced housing market and high dollar had placed the Reserve Bank of Australia “between a rock and a hard place”. “Put all those things together and it could be a difficult ride for us,” he said. “This isn’t about doom and gloom – it’s about looking at the risks and numbers. There’s a clear and present danger.”
…Professor Grafton, now at the Australian National University’s Crawford School of Public Policy after heading the Federal Bureau of Resources and Energy Economics between 2011 and 2013, called for renewed focus on regulating the banking sector to head off potential problems, reforming taxes and fixing budget problems.
“There’s a whole range of things we need to be thinking through and we do need to do it sooner rather than later given there are very real risks,” he said.
“I’m really concerned about 2015 – investment growth is coming down substantially, we have asset prices at record highs and we do seem to have a high dollar that’s put the Reserve Bank between a rock and hard place. And then there’s China.
QED.
