Summary: Some economists are predicting dark times for the Australian economy, but they are attributing an importance to the terms of trade that it doesn’t have. Although headline GDP growth is slightly below trend, there is good reason to believe the figures are wrong. Other indicators such as jobs growth and building approvals are also strong.
Key take-out: Growth is above trend and accelerating, although a fall in confidence poses a danger to continued above trend growth.
Key beneficiaries: General investors. Category: Economy.