• Usually when the mining resource boom peaks and finishes Australia has had to endure a recession. The last t
• Usually when the mining resource boom peaks and finishes Australia has had to endure a recession. The last time this happened was over twenty years ago in 1986. What is different between then and now in terms of the performance Australian economy? What happens when the boom goes bust?
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Unlike two decades earlier, now the World economy is much more globalised with many hoghly populaated, poor countries led by China and India are developing very rapidly towards economic prosperity. This should point to sustained, strong demand for mined output for the next two decades and the deep long mining industry depression may not arise. The amplitude of the cyclical fluctatations in demand will be reduced and the trade cycles in mining may become shorter in duration with narrower differebnces betwen peaks and troughs.