I am not sure that Labor, or journalists, are making these points as clearly as they should, since they seem to me to represent an entirely reasonable interpretation of the situation:
a. clearly, the new Coalition government has not yet implemented anything of significance in terms of its effect on the performance of the economy;
b. any good figures for the economy which have come out since the election eat into the credibility of the Coalition argument that the economy was suffering from Labor mismanagement. In particular, it eats into (or rather, destroys) the credibility of the argument that the carbon tax or mining tax was having a harmful effect;
c. the one clear thing which it seems may well harm the economy - consumer confidence - has taken a battering because of the announced Coalition's budget. That is undeniable, there is no other explanation.
GNE falling for the quarter is nit good particularly for the transition.
ReplyDeleteIt will be interesting to see if the terms of trade fall or not.
If they do the improving nominal GDP growth rate will go backwards again.