Nov 25, 2011

Swan can cut, but the bad news from overseas won’t stop

While the mining boom continues to power the Australian economy, the news from offshore continues to worsen.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

Two pieces of economic news yesterday sets the scene for next week’s Mid Year Economic Forecast and the associated spending cuts required to make up for the weak growth in tax revenues, especially company taxes.

Yesterday we had confirmation, if any were needed, of the extent of the mining boom with a shock surge in the value of construction work done in the quarter: a 12% rise in the three months to $47.5 billion, or six times the market estimate. That included a 22.6% surge in engineering work to just over $28  billion, 49% up on the third quarter of 2010.

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