The end of the Mining Investment boom is an economic headwind that sees the Australian economy in a period of transition, and the Reserve Bank hoping for a weaker dollar and increased consumer spending.
It is a problem for the Federal Government, the Treasurer and the Budget.
On top of that, Australian manufacturing is struggling and Holden has joined Ford in announcing its withdrawal from car production in Australia. This has focussed attention on South Australia and its economy.
But the Australian today reports the “Abbott government has turned its sights on reigniting BHP Billiton’s giant Olympic Dam expansion as it seeks to find an economic antidote to Holden’s decision to cease carmarking in Australia from 2017”
The focus on Olympic Dam as an antidote to South Australia’s economic woes is understandable as BHP’s decision to shelve the mines $28 billion expansion in August 2012 took away an expected “8000 construction jobs, 4000 permanent jobs and 13,000 associated jobs.”
Fingers crossed. But as the NAB wellbeing index showed yesterday people in South Australia and the Northern Territory report the highest wellbeing in Australia. So it’s not all bad news.