House prices high relative to wages
Australian house prices are still “very high relative to rents and incomes,” according to the latest economic outlook from a worldwide organization.
The Economic Outlook from the Organisation for Economic Co-operation and Development, put Australia near the top of the list for economic growth over 2012 and 2013.
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The report explained that this growth is forecasted based on the mining expansion as the main driver.
“Mining expansion will continue, but some other sectors are having to adjust to the high level of the exchange rate and raise their productivity, which can be expected to weigh on the labour market,” the report summarized.
Recommendations made to “the authorities” by the report included that the economy should be facilitated by making the necessary adjustment and changes, rather than impeding changes by subsidising specific industries.
