RBA forecasting a boom

From Deputy Governor Ric Battellino

The Australian economy in 2009 has held up much better than had been expected earlier in the year. Australia is the only developed economy where year-ended growth in GDP has remained positive during the past year. It is now 18 years since Australia has experienced a negative in year-ended GDP growth, a very prolonged economic expansion. With the economy having only recently entered a new upswing, it is reasonable to assume that we will see this growth extended for a few more years yet.

Over the next few years, Australia is also expected to see a further expansion of the resources sector, including the development of some very large gas projects. Mining investment, which is already at record levels as a share of GDP, could rise substantially further in the next five years or so

If this scenario eventuates, it will have powerful and broad-ranging implications for the economy.