As the economy expanded, large-scale immigration satisfied the growing demand for workers, especially after the end of convict transportation to the eastern mainland in Moreover, while employment has continued to grow strongly, forward-looking indicators of labour demand suggest future employment growth will remain solid.
Do various parts of the global supply chain need to relocate? Graph 7 The effect of the drought is evident in the recent decline in rural exports. Graph 4 In thinking about this issue there are a few considerations that are worth bearing in mind.
A deteriorating global economy and trade woes are key risks to the outlook. If that was the premium today, the yield curve would be a fair way from inversion. Thirdly, as I just mentioned, credit spreads are tightening. Yet in many economies, including Australia, the services sector accounts for well over half of the economy.
Much of the increase in arrears has been in Western Australia. Services say more about domestic demand, which has been more resilient. Why would they do this if growth in economic activity has slowed so much?
Domestically, I have highlighted the challenge in determining the current and future pace of growth in the economy posed by the conflicting signals provided by the labour market, the GDP data and the business surveys.