In One Chart, Here's Why Australia Is So Challenged By Shifts In The Global Economy

David Bassanese has posted a great article over at the AFR blaming weak local demand for below-trend economic growth.

But our troubles aren’t all home-grown.

A chart in Deloitte’s Tracking The Trends 2014 report shows how poorly the global mining sector has fared in the past three years:

Miners underpin a significant part of the Australian economy, with mining activity contributing about 19% of Australia’s GDP according to analysts at BIS Shrapnel.

Tellingly, the ASX 200 Resources index has tumbled 31% from May 2011 to about 4055 currently.

Deloitte today reported that miners would continue to face tough conditions in 2014, including rising costs, low commodity prices, supply-demand imbalances, and decreased productivity.

The firm said Australian miners needed to address three issues in particular: sustainable cost practices and productivity; innovation; and capital management.

There’s more in the Deloitte report.

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