It is strange after spending so many years out of Australia, I have been catching up on the Australian news while in Cambodia. For $2 a night you can get a basic room, but for $5 a night you can get your own bathroom and cable TV.
Australia’s economy is booming, thanks mainly to a export lead mining boom. Unemployment is at an all-time low. The stock market is also at an all-time high. Whoever thought Australia’s unemployment rate would rival Japan’s? Most of the growth is coming from China’s own economic boom.
Several high profile companies are being sold to private equity funds. Like all booms, at some point there is going to be readjustment of the economy. I wonder when we can expect it to happen – late 2007, early 2008. Perhaps, post Beijing Olympics 2008.