Economy in ‘bust’ mode

  • Australia’s economy is in “bust” territory for just the second time in two decades, but that doesn’t necessarily point to a hard landing, according to Citi.

Economists for the investment bank, led by Paul Brennan, have developed a “bubble meter” for the economy, which creates a “Z score” by measuring terms of trade, mining investment, bond yields, apartment approvals and house prices.

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economy-bust

Record house prices against record low interest rates is the biggest risk, according to Citi. Photo: Andrew Meares

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