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Both Countries Grew Strongly over the Decade Australia stronger, but not by much

Both Countries Grew Strongly over the Decade Australia stronger, but not by much. GDP growth. But Australia Experienced Much Stronger Terms of Trade which fell in the crisis, but by less. Terms of trade.

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Both Countries Grew Strongly over the Decade Australia stronger, but not by much

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  1. Both Countries Grew Strongly over the DecadeAustralia stronger, but not by much • GDP growth

  2. But Australia Experienced Much Stronger Terms of Trade which fell in the crisis, but by less • Terms of trade

  3. Both Countries’ Financial Systems Weathered the Crisis Wellwith similar institutions and policies • Credit default swap spreads

  4. Strong Chinese Growth Assists Australiamore than most countries Exports to China (% of total) Exports share for China’s ‘domestic’ use Source: Grattan Institute

  5. Australia Is Investing Heavily In Mineralsencouraged by new finds, strong prices & bottlenecks • Capital investment by the Australian mining industry Source: Grattan Institute

  6. Australian Future Growth Potential Looks Very Strongdue to investment, population growth, terms of trade, & stimulative policies • Estimates of potential output growth Source: OECD

  7. NZ also Stimulated the Economybut growth went negative & pick-up slower • GDP growth

  8. But Financial Markets View the Countries Similarlydespite different growth & inflation forecasts • Official cash rates

  9. And this is Particularly so in FX Markets where the cross-rate is very stable • Exchange rates

  10. Despite NZ Economy being more Vulnerable manufacturers & services have a bigger share of exports • Non-commodity exports

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