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2008 During the world financial crisis. A Statement out of China. That the government will spend $600 Billion on a stimulas package on infrastructure across China
A record $132.9bn of capital expenditure was Planned in the minerals and energy sector as Of Octber 2010, in Australia the Australia Bureau of agricultural & resource economics Reported a 21% increase since April
Over the next few years half of our Australian growth rate of 4% per year will come from mining related industries including mining investment. The resource sector is approx 20% - 25% of the economy and growing at 10% per year - 75%-80% of the rest of the economy e.g. UK,France, Germany, Japan and USA is growing at 2% per year.
To compare with the world economy, the UK,French, German, Japanese and US Economies in 2010 are smaller than in 2007, before the economic crisis - since 2005, the major counties have only grown 1% or less per year. Australia has grown 15% since 2005, 3% each year. Our interest rates are high due to growth while other economies stagnate due to our commodity export prices that is booming our real income.
In terms of what our output can buy has risen faster at 25% over 5 years.
The world is being
transformed in front of us three quaters of world growth in the past 5 years has come from emerging markets - Australia is the bridge between a stagnating developed world and the booming emerging nations. In five years India has grown 50% and China 70%. The great recession never happened to them we are seeing incomes converge as the poorer nations grow rapidly.
The developed countries share of world output will fall from 63% to less than 50% in 2013, That seems likely to continue. Australia has the fossil fuels that China and India need to lift themselves out of poverty, by supplying resources they need, if Australia imposes a carbon tax it must not destroy the competitiveness of our resources exports.
We can reduce our own carbon consumption by taxing consumption rather than taxing production. As with GST, taxing carbon in imports and exclude exports is another view that should be examined.Australia got through the Global Recession because of a healthy banking sector, so cutting interest rates worked here. Strong public finances allows more public spending.
Our boom is due to our resource industries. We must have and attract skilled labour and capital so potential large mining projects are not deferred. Mining revenue can benefit everyone, by improving infrastructure and paying for tax, welfare and training reforms that create jobs. ES