The state of the states
Interesting as usual, the Newcomers’ Network May newsletter led me to Saul Eslake’s (ANZ Chief Economist) comments about jobs, business and wealth moving from the south east – where most of the population lives – to the north and west, where the China-driven resources boom is centred. I found it a fascinating overview.
W A – boomtime
Queensland – also doing well
N T – picking up
NSW – under-performing
Victoria – doing quite well ‘considering’
S A – wine glut hasn’t helped
Exception to ‘weak south-east / strong north-west’
Saul Eslake’s conclusion:
The key challenge for the resource-rich states is not to indulge in wasteful spending and for the others a key issue is how to deal with the consequences of an exchange rate that will undermine the competitiveness of their traditional strengths.