While everyone is focusing on Trump and Europe (which, politicians aside, are getting some good numbers), Australia is grinding to a halt…with absence of politicians (maybe crazy one are better than none?).
Employment and participation rates are slowing.
Wage growth is decreasing (sub 2% for the private sector and just above 2% for the public sector).
Underlying inflation is just above 1%pa.
The RBA cannot stimulate the economy lowering the interest rates as they are starting to be really scared about a credit bubble (specially apartments in Brisbane and Melbourne).
Moror industry is winding down and apartment construction is off to a cliff.
Commodities and energy, after the surprise boom in 2016, are starting to deflate.
The only thing would be for the Government to forget Budget repair (which is much better than ALL the developed nation) and do some infrastructure spending (and we are in a much better position than Trump-America to do it).
But the Government, with all his talks around Budget crisis, kind of shoot on its own foot.
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