Australia, known as the lucky country for its resource abundance and temperate climate, is about to find out how long its latest winning streak will last.
BHP Billiton Ltd. (BHP), the worldâ€™s biggest miner, last week mothballed projects valued at more than A$50 billion ($52 billion) by Credit Suisse Group AG and Deutsche Bank AG. At the same time, Australiaâ€™s resources minister called the end of a bull run in commodity prices, and the central bank chief predicted the cresting of the investment wave within two years.
The deceleration of the industry that helped secure 21 recession-free years heightens focus on the views of a minority seeing economic contraction in a nation where consumers took on more debt than Americans at the height of the mortgage bubble. While Bloomberg News surveys indicate growth exceeding 3 percent in 2013 and 2014, Deutsche Bank sees the danger of a recession.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.