Mere hours after posting about Australia’s amazing 21-year stretch without a recession, I read that Australia could now be on the verge of a recession.
Australia faces a gathering threat to its 21-year run of recession-free growth that will probably require the central bank to cut interest rates to record lows and keep them there for some time, if the winning streak is to stretch to 22.
The slowdown in China has deflated prices for Australia’s main resource exports while forcing miners to scale back on their most ambitious expansion plans. When the country reported its widest trade deficit in three years for August, it seemed just a taste of what was to come.
I wish I could say that I predicted that.