Hunter economy mellows as headwinds bear on non-resource sectors
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Simon Deeming Hunter Valley Research Foundation Director of Research presented the full results from the HVRF’s December quarter Hunter Region Economic Indicators at the Foundation’s breakfast on Friday 10th Feburary.
Growth in the Hunter economy has waned further over the last six months with the demand for labour evidently slowing, despite little change in the unemployment rate, according to HVRF Director of Research Simon Deeming.
“The Reserve Bank cut interest rates in November and December in response to the headwinds facing specific sectors of the economy,” he says. “We are seeing increasing evidence of the challenges facing retail, construction, tourism and parts of the manufacturing sector across the Hunter.”
The Hunter’s economic prospects in the coming year remain beholden to a volatile international context according to the Hunter Valley Research Foundation’s latest Hunter Region Economic Indicators.
“The Hunter’s economic prospects can be considered in terms of two scenarios,” he said. “In the absence of a second economic crisis, the Reserve Bank will seek to subtly balance economic activity, by tempering or stimulating the non-resource sectors. In contrast, a second crisis would see strong policy stimulus to the benefit of the domestic-oriented sectors. Fortunately, unlike many western economies, the Reserve Bank and the Federal Government have the capacity to stimulate growth under either scenario.”
Download overhead slides from Simon Deemings' presentation.
The HVRF has monitored the Hunter economy continuously since the 1980s and the Upper Hunter and Central Coast economies over the past ten years. Data is collected from households and businesses using a series of regular omnibus surveys for each region or sub region. The key findings of the HVRF research program are compiled in three regular publications:
Hunter Region Economic Indicators (quarterly) - Download latest edition
Upper Hunter Region Economic Indicators (six monthly) - Download latest edition
Central Coast Economic Indicators (six monthly) Download latest edition
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