Architects of the float of Australia’s dollar, trading at the same level as when exchange controls were lifted 30 years ago, say the currency must devalue and economic reform be renewed to avert a recession.
Manoj Wanzare, an Indian fund manager with a master’s in business administration, personifies Australia’s best bet to address the risk of a slump in income growth as the nation’s once-in-a-century mining boom fades.
Australia’s economy expanded slower than economists forecast last quarter after households boosted savings, suggesting the central bank may need to do more to spur spending as a mining investment boom wanes. The Aussie fell.
Australian businesses need to boost efficiency to maintain growth in living standards and could use engineers freed up from mining construction to build more infrastructure, central bank Deputy Governor Philip Lowe said.
Chevron Corp., operator of the A$52 billion ($49 billion) Gorgon natural gas venture in Australia, said some “uncertainties” remain in the construction of the project after its budget last year jumped 21 percent.