Prime Minster Kevin Rudd has warned that the Australian economy will no longer be able to rely on being boosted by the mining industry, smh.com reports.
Speaking to business leaders on Wednesday, Rudd said Australia will be able to continue taking advantage of the high commodity prices that are locked in until March next year, but should expect a slow down after that.
“We do not anticipate a full unwinding of the income boost delivered to the Australian economy through the mining boom,” Rudd said.
“Nevertheless we anticipate a gradual unwinding of the boom, which will have an impact on our national income over the medium term.”
While the mining boom and national economy are both slowing dramatically, Australia remains in a better position than much of the developed world, Rudd said.
“Every member of the G7 major economies has experienced a negative quarter of growth in the past year,” he said.
“While most other countries are contracting, our economy continues to grow.”