Originally Posted by
kenish
The Aussie economy is very robust thanks to the major components being raw materials and agriculture and the wisdom to align with Asia 2 decades ago. Just as important, Aussie public sector debt is a small percentage of GDP (I believe less than 10%) while ours is north of 65% and getting worse.
Our Federal Reserve has further eased rates (they are at a 53-year low) while Reserve Bank of Australia recently raised rates...all cogs in the wheel. If any of my comments about Oz financials are off, please correct them!
Agriculture when compared to resource exports is fairly small, infact Australia is a net food importer now. Total agricultural exports are about 1/10th of resource exports.
Re Australian public debt the government went into the GFC with zero debt (there were government bonds, but these were largely to assist financial markets in pricing assets), debt is expected to peak at about 7% of GDP through the cycle.