"The last time Australia suffered a recession, the Soviet Union still existed and the internet did not," The Economist points out.Around 27 years of uninterrupted growth is a record for a developed country. But how much longer can the "wonder down under" last? One of the key drivers of growth was a housing bubble that allowed people to borrow against the rising value of their houses and thus spend more than their income. Throw in mortgages and household debt increased from 45% of GDP in 1996 to an eye-watering 120% at the end of last year. The housing bubble is now hissing air, which, along with overstretched household balance sheets will reduce the impetus from consumption.
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