2014 is going to be a challenge for Australian business, the RBA and the Government according to Michael Blythe, CBA chief economist, as the economy seeks to “to navigate through four booms, three transitions and a ‘bubble’.”
The big question as the economy faces these challenges is what could “lock in the desired upturn” and as such, ease the transition of the economy from the mining investment boom to sustainable domestic lead growth.
According to the CBA’s Future Business Index survey, “the answer has to do with confidence, government policy and the currency. Progress has been made in all three areas.”
So while growth in 2014 may not be “locked in”, it is looking much healthier.