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3 Apr 2015
Cheaper Iron ore a large fall in national income for Australian economy - Capital Economics
FXStreet (Bali) - The drop in iron ore prices means a large fall in Australian national income for the economy, one hard to absorb, notes Paul Dales, Chief Australia & New Zealand Economist for Capital Economics.
Key Quotes
"A fall in the price from US$133 in late 2013 to US$45 by the end of this year will essentially wipe out $11bn of iron ore revenues, which is equivalent to a reduction in GDP of 0.7%. This is a large fall in national income for the economy to absorb, with the biggest drop due to be felt this year."
Key Quotes
"A fall in the price from US$133 in late 2013 to US$45 by the end of this year will essentially wipe out $11bn of iron ore revenues, which is equivalent to a reduction in GDP of 0.7%. This is a large fall in national income for the economy to absorb, with the biggest drop due to be felt this year."