Wednesday, 31 Aug 2011

Report: Structural change more concerning than financial shocks

Australia might be panicking about the financial shocks being felt around the globe but, according to leading industry analyst and economic forecaster, BIS Shrapnel, it is the structural change to the Australian economy being caused by the resources boom, and the strength of the Australian dollar that are the real concerns.

BIS Shrapnel’s Long Term Forecasts 2011 – 2026 report focuses on medium-term issues, and says that local trade-exposed manufacturing and services are contracting as they make way for growth in the mining industry, but what Australia really needs is an infrastructure investment-led productivity drive to bring balance to the economy.

Contact: Dr Frank Gelber