So it seems the economic outlook in Oz remains bright (at least compared to the rest of the industrialised globe!) This past week both Bloomberg and Standard & Poor released reports pointing to superb growth in the last 3 months: 1.2% growth in the first instance and 2.0% in the second. Compare this to Britain (0.2% GDP in the second quarter) and the US (0.3% growth in Q2) and it is quite obvious that Oz is going gangbusters!
Even better for the people Down Under this looks set to continue. Investment in mining (the main engine behind all this momentous growth) increased to $82.1bn in the 12 months ending June - a 45.0% increase on 2010! So long as this goes on (and unless some unforeseen disaster befalls China and India it IS going to go on) Oz looks set to remain sheltered from the disastrous global outlook
Of course (to back up on that last statement a little!) Oz is not 100% sheltered from the rest of the planet - and this is reflected in some economic niggles this past week. Oz recorded its biggest quarterly drop in jobs since 2004 last week - telling us that 14k jobs were lost in the 3 months to August. Furthermore the jobless rate is going up - hitting a 10-month high of 5.3% last month. For the most part this is because the strong dollar is prompting businesses in manufacturing to let people go.
Looking ahead I think both the Oz economy and dollar are going to remain in great shape. Premier Julia Gillard has announced a conference in Canberra to help manufacturers adapt to the strong dollar and (who knows?) this could help manufacturing out of its hole. Furthermore the mining boom is going to continue lending support. So though Europe and the US might be going to hell in a hand basket it is a great time to be in Oz!