This week it was announced that Australia’s GDP growth has fallen in the second quarter compared to the first. Which has our learned friends raising serious questions about the state of the economy. As we know our mining industry is very reliant on China and unfortunately at the moment Chinas economy is not looking too rosy, with a significant slowdown in China’s current growth and further indications that it will slow further.
In turn this has affected our most precious export commodity; Iron ore… which has taken a dive to $86 per tonne which is half of what is was a year ago. Also this week FMG shares shed $1.4 Billion off the share market over a 2 day period, causing them to announce they are deferring investments and laying off workers.
Last month BHP Mothballed their Olympic dam expansion and the outer harbor project at Port Hedland causing some of the major engineering houses in Perth CBD to cut away several engineers and drafting contractor jobs (reportedly between 1000-1500 jobs this week.) The good news is that Rio Tinto seems to be pressing on regardless with their aggressive plan to increase their production capacity by 60% before 2015.
To know more about Employment agencies perth mining click here.
Resources Minister Martin Ferguson recently said the investment boom was over and in turn was quickly criticised for his comments, maybe he should have reworded it to the “Mining Boom has peaked” which seems like a more realistic prediction at the moment.
I am not an economist and far from it, but from my perspective it would seem that we all need to be a little careful currently and definitely not bury our heads in the sand in denial. The trade minister Craig Emerson seems to think we still haven’t hit phase 3 of the boom as yet and we have bigger things to come….mmm!, I am not so sure, but hope he is right?
I heard a comment this week “Australia has gone in a short space of time from the lucky country to the country whose luck is running out”.
Hopefully not, but only time will tell.