Malcolm Edey
Malcolm Edey
compared current mild note previous sector unusually
Having said that, however, I should note that the current downturn in this sector is an unusually mild one compared with previous cycles.
adjustment continue growth household pattern reduce risk sector sharper skewed spending towards
A pattern of growth that was heavily skewed towards household spending was not going to be able to continue indefinitely, and the balance-sheet adjustment now occurring in the household sector should reduce the risk of a sharper adjustment later.
adds appreciate boost exports fifth hard increase national percent provides terms trade value
It is not hard to appreciate that this provides a significant boost to incomes and spending. With exports representing about a fifth of GDP, each 10 percent increase in the terms of trade adds about 2 percent to the value of national income.
businesses change domestic drivers growth households main rather seeing
What we have been seeing is a change in the composition of growth, with businesses rather than households now the main drivers of growth in domestic spending.