Vital Signs: where are all the jobs?

Two important observers of the Australian economy – one foreign, one domestic –revealed rather upbeat assessments about economic growth this week.

The minutes from the RBA’s April board meeting were punctuated with positives:

“conditions in the global economy had continued to improve over 2017…GDP growth was expected to be above potential over 2017 in all three major advanced economies… the increase in the US federal funds rate in March had been well anticipated…financial conditions in the United States had eased slightly, including via a depreciation of the US dollar, a decline in corporate bond yields and a rise in equity prices…The European Central Bank (ECB) and the Bank of Japan had both left their policies unchanged in the prior month, while noting that domestic economic activity was improving.”

Meanwhile, the IMF world economic outlook had positive news for the global economy, with world growth forecast to rise from 3.1% in 2016 to 3.5% this year, and 3.6% in 2018. Read more

Richard Holden – Vital Signs – 21 Apr 2017