Australia is on the verge of breaking Holland’s record for modern-era continuous economy growth after announcing 2% rise of business investments in December 2016. The good news marked the 25th year of no recession in the country and brought hopes for even brighter future among the analysists. The country Treasurer Scott Morrison said the Australian economic success continues to be above the OECD (The Organisation for Economic Co-operation and Development) average and that “confirms the successful change that is taking place in our economy as we move from the largest resources investment boom in our history to broader-based growth”.
Not so bright was the picture a few months ago, when the country marked only 0.5% growth for the third quarter. But the wise decision to increasing export and focusing on the consumer spending helped for recovering and the country stayed firmly on its successful path. Australia’s main export products are iron and coal and for years the demand from China was the main reason for the growth. However, China’s intentions of decreasing the fossil based energy consumption and therefore reduced demand for Australian coal reflected on the economy in the 3rd quarter of last year. Still, the mining export has been stabilized in few months. Agriculture marked stable growth as well.
According to the analysts from AMP Capital, the country can look bravely to a “reasonably bright” future with estimated growth up to the previous levels of 2.5% – 3%.
The news was followed by a report by CoreLogic for Australian median dwelling price (MDP) (the movement of property price in certain area) pointing that nationwide, the property prices rose by 1.4% and a currently the MDP is $570,000. In Sidney, this growth up with 18% for the last year. According to Cameron Kusher, senior research analyst at CoreLogic, the reason for this is that Australia is attracting more and more foreign investors. “In Vancouver, which is very similar to Sydney, what we see now is property prices falling rapidly because it’s a major disincentive for foreign investors,” he added.
The low interest rates along with migration and population increase are the other reasons the experts believe that the market will sustain its growth.