Australia hasn’t endured a recession since 1991. Economic reforms made in the early 1980s have helped.
Meanwhile, seemingly endless demand from China for Australia’s resources – iron ore, copper and coal in particular – along with higher government spending, kept the economy above water during the global financial crisis. But now, Australia’s luck might be running out.
The unemployment rate jumped from 6% to 6.4% in July. That’s the highest level in more than a decade, and it’s happened in a very forgiving monetary environment – interest rates have been cut from 4.75% to 2.5% [...]