Thursday, October 22, 2009

Australia - Export/import prices still falling

As discussed in Australia - first developed nation showing hallmarks of stagflation. Australia is starting to show economically stagnated signs. Basically when prices start to rise and the Reserve Bank of Australian begins to lift interest rates (1st developed country to do since the 'crisis'), it's an attempt to cool off an overheated economy thanks to an oversupply of fiscal stimulus, namely housing grants. But of course the paradox is that Australia's earnings as a country are decreasing on falling exports this can be blamed on the high Australia dollar and slower China growth (as opposed to hyper speed pre crisis).

The Terms of trade were rleased on the 23rd October and kinda flew uder the rader, but the trend is there all falling inport/export prcies, refer to graphs:

Exports/Imports


Source ABS

No comments:

Post a Comment