Tactics to save Australia from recession in Asian market and non-resource sectors hindered.

Business reluctance to invest leads to unexploited opportunities offshore to avoid Australian

recession

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The non-resources sector of the Asian Market to help Australia from facing a 2016 recession are not
fully exploited due to low business confidence and lack of capital expenditure, according to the
CEDAs 2016 Economic and Political overview released yesterday.

Though Australia is equip with accommodative policy settings that will ease the brunt of economic
turbulence, CEDAs Chief Executive Professor the Hon. Stephen Martin says domestic income
weakness, courtesy of falling commodity rates, remain a risk that should not be ignored.

The economy is a fair way from recession, but a variety of income measures show a much weaker
picture. Incomes in 2015 grew at the slowest pace since the early 1960s.

At current, economic stimulation is hindered by the current slump in business confidence under the
current Turnbull government. As the Prime Ministers focus on an innovative and agile Australian
market is failing to translate into positive action, it is less likely that confidence will be less likely to
improve in this election year with households and businesses to deter spending.

Low business confidence means we wont get the investment needed to drive new jobs in non-
resource sectors, says Professor Martin

With the decline of the Australian mining sector since its peak in 2012, causing a strain on residential
construction to help stimulate the jobs lost, in the EPO the Australian think tank determined that the
vital capital expenditure in non-mining sectors to stimulate the Australian economy this year is not
adequately utilised.

The 30 per cent decline in government capex since the mining capex peak is particularly
disappointing. The ongoing success of the jobs transition will depend on how much can still be
squeezed out of the residential construction boom, and whether business and government regain
their appetites to invest.

Professor Martin said the Australian economy is entering a period unlike anything we have seen in
more than 20 years and there are significant global risks to our economy if these opportunities are
not maximised because of a reluctance to invest.

Thats why a focus on recognising opportunities such as increasing demand for education, tourism
and health services from Asia and on growth enhancing reforms such as real tax reform will be vital
in 2016 Australias experience in these areas mean we are, again, well placed to take advantage.
says Professor Martin.