Yes, it’s Futureboom! But it’s not the RBA nor Treasury. It’s the NSW Budget:
Note the wage price index and population growth. Wages are magically going to surge right alongside new waves of cheap coolies. And that’s going to keep consumption up even as house price fall:
This strength has been underpinned by households—through dwelling investment and household consumption—supported by strong gains in dwelling prices, above-trend population growth and low interest rates. Public investment has also made an impressive contribution, reflecting the Government’s asset recycling strategy, with positive spillovers for business investment and employment. Service exports are another highlight, with relatively broad-based growth across tourism, education and professional and technical business services. Education related travel has been a standout. While conditions in the housing market continue to soften, the overall economic outlook remains favourable. External demand conditions are likely to improve as the national and global economies strengthen. Growing Asian demand, low interest rates, a lower Australian dollar, above-trend population growth, and a historically large infrastructure and residential construction pipeline continue to provide support. Consequently, the economy is forecast to maintain above-trend growth for the next two years. The pace is, however, expected to ease and the composition of growth shift towards exports and business investment and away from household consumption and dwelling investment.
