The future growth of Australia’s economy has been questioned in a surprisingly frank update from the Organisation for Economic Cooperation and Development (OECD).
The OECD says the weakening of the resources boom will only be partly offset by a strengthening of the non-mining sector.
It is an unusually direct warning that the OECD makes deep inside its World Economic Outlook, on page 103, and it says Australia’s economic growth will temporarily slow to 2.5 per cent this year before picking up to 3.5 per cent in 2014.
However, the report cautions that the anticipated weakening in mining investment, which the Reserve Bank has been warning about for the past year, will only be gradually offset by mining exports and the strengthening of the non-mining sector.
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