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1 Jun 2015
Australia's falling capex a signal of growth challenges - Moody's
FXStreet (Bali) - Moody's credit outlook, released today, notes that Australia's disappointing capital expenditure figures last week is a signal of growth challenges, Bloomberg reports.
Key headlines
"Capex "numbers and accompanying projections for investment in the coming year signal a decline in investment in Australia despite historically low global and domestic interest rates."
"Unless the trend reverses, Australia's growth over the next two years will be lower than the 2.9% average of the past decade."
"Government tax revenues will grow more slowly, impeding efforts to stabilize government debt, which increased to 30.7% of GDP in 2014 from 9.7% in 2008."
"Could reduce foreign direct investment inflows, which would either exacerbate lower growth or increase the country's reliance on more volatile portfolio and debt capital to finance its current account deficit."
Key headlines
"Capex "numbers and accompanying projections for investment in the coming year signal a decline in investment in Australia despite historically low global and domestic interest rates."
"Unless the trend reverses, Australia's growth over the next two years will be lower than the 2.9% average of the past decade."
"Government tax revenues will grow more slowly, impeding efforts to stabilize government debt, which increased to 30.7% of GDP in 2014 from 9.7% in 2008."
"Could reduce foreign direct investment inflows, which would either exacerbate lower growth or increase the country's reliance on more volatile portfolio and debt capital to finance its current account deficit."