Australia’s resources boom has been credited many times over for keeping the country out of recession while the rest of the world succumbed to the GFC.
It was the biggest resources boom Australia has experienced and it’s now in the third and final stage, a period of increasing production and export volumes, falling commodity prices and investment levels tapering off.
In his presentation today at the Australian Conference of Economists in Hobart, Macroeconomic Group executive director David Gruen used this stunning chart to show just how massive Australia’s resources investment boom has been.
“Resources investment increased from less than 2 per cent of GDP pre-boom to around 7½ per cent in 2012-13, an increase, in dollar terms, from around $14 billion to more than $100 billion a year,” he said.
“This has seen an additional 180,000 workers employed in the resources sector since the boom began and will see the capital stock in the resources sector almost quadruple by 2015-16.”
Here’s the chart showing just how steep investment growth has been.