Reports of mines faltering ‘overblown’

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Trends forecaster BIS Shrapnel has claimed the mining sector is crying poor at the moment, while the non-mining sectors continue to suffer from under-funding and poor investment. 

Chief economist director Dr Frank Gelber made the comments yesterday at BIS Shrapnel’s Economic Outlook seminar in Sydney. 

He said recent reports of the mining sector faltering were overblown, and the outlook was still positive for what is Australia’s biggest cash cow. 

“There is a rise in the cost of mining projects, yes, however while previously it was 47% profits, it’s now 42%,” said Dr Gelber. 

However, he warned non-mining sectors were still at risk of being unable to support the economy should mining experience a “hard landing” in the next three years. 

Specifically, he said government spending on infrastructure across most Australian states – which included housing projects – was a “big concern.” 

There were signs of hope, with Dr Gelber forecasting a modest housing recovery before 2015, although it would be “gradual.”

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