Australia’s mining investment boom could be over within the next two years
In a report released today, Deloitte Access Economics says the current rush of mining investment will dry up more rapidly than once predicted.
“The strong bit of Australia’s two-speed economy won’t stay strong for more than another two years or so,” the report states.
Most of the mining projects that fuelling the current boom in investment came in response to earlier policies but few big projects remain in the pipeline, the report said.
“There’s still enough gas in the tank of huge resource projects to provide handy pipeline protection if Europe were to turn pear-shaped,” Deloitte Access Economics director, Chris Richardson, said in a statement.
“That said, with global prospects under a cloud, investment question marks already on the horizon, and both sides of politics pandering to populism, Australian exceptionalism is at risk of coming a cropper down the track.”
Despite the prediction, Deloitte argues Australia’s economy is in better shape than widely believed after 21 years of growth without a recession.
Australian businesses continue to have a “glass-half-empty” outlook for the local economy.
“Yet we didn’t celebrate our happy 21st birthday without a recession on 1 July because we were too busy seeing a glass half empty,” Mr Richardson said.
Australia’s economy expanded by 3.2 percent in the year to June 2012, with Deloitte forecasting annual economic growth between 3.0 and 3.4 percent for the next five years.
the commodities boom is only a boom for coal and iron ore..not the other ones..and if china india and brazil cool off we will feel it big time..