Here is how Australia spent its mining boom bonanza
According to data published by the Reserve Bank of Australia, the country’s decade-long mining boom underpinned a glut of spending on new cars and household durable goods, such as such as furniture, appliances, TVs, cameras and computers.
Purchases in those categories shows the RBA’s study were 30% and 20% respectively higher than what would have been without the so-called boom.
“The mining boom has substantially increased Australian living standards,” conclude the paper authors, economists Peter Downes, Kevin Anslow and Peter Tulip.
The analysis shows there were two main factors driving the spending trend. First, a surge in household disposable income per person, which was 13% higher last year than if there had been no mining boom. Second, the increased demand for Australian minerals pushed up the exchange rate, making imported goods such as cars, TVs and computers cheaper for local consumers.
And that’s not all. If the mining boom never happened, Australia’s jobless rate would be 1.25% higher, the researchers found.
You can read the full study here.