Australia replaced the mining boom with a government spending boom

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Australia is experiencing a major economic shift driven by a decade-long surge in federal and state government spending:

Public demand by component

Economists claim government spending is now structurally reshaping the economy in a way comparable to the early‑2000s mining boom.

Alex Joiner, chief economist at IFM Investors, clearly illustrates the shift from the mining boom to the government-spending boom below.

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Mining boom versus government spending boom

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.