re: current account deficit??? does it matter
Agree Alan. The big concern relates to the resources boom and its insatiable appetite for imported machinery. As in the past, this sector has a major impact on the trade imbalance and this will continue (perhaps even acclerate). I haven't seen a recent bust-up of the imports to see if the "diggers" are outweighing the "plasma screens". The difficulty for the government is how to backoff the consumer spend but still facilitate the resource and farming sector growth. In the past this has been managed through interest rates but this would reduce resource growth.
Do you have a scenario where both objectives can be acheived?
