The Business Day Mid-year Economic Survey results are in, and the consensus of 25 economists see continuing economic growth in 2015 for the Aussie economy, including:
-Australia GDP growth of +2.8% in 2014/15
-Cash rate at June 2015 of just 2.69% (consensus)
-Wages price index +2.9%
-Unemployment rate December 2014 of 6.0% (today 6.0%)
-Underlying inflation to June 2015 +2.6%
Economists also expect share prices to move a little higher by 30 June 2015, with the consensus seeing the XJO (ASX 200) moving to above 5,800.
Household spending in 2014 is expected to rise +2.6%, while housing investment should increase nicely by +7.4%.
China's GDP for the year to December 2014 is expected to be 7.3%, but the terms of trade could decline by -4.9%.
As for the so-called debt crisis (lol), economists were scathing, dismissing the notion as "an abuse of the English language" (Saul Eslake).
Shane Oliver, Chief Economist of AMP, noted: "Australia is not facing a budget crisis or a public debt crisis".
Chris Caton of BT Financial said that it was "simply absurd" to suggest that Australia has too much government debt.
Caton also added that while higher house prices would no doubt be a problem for some buyers, "housing is not a major macro problem. There is no housing bubble waiting to burst".
Saul Eslake said a housing market correction was "unlikely to eventuate as household debt is not unsustainably high".
Permabear economist Steven Keen said that there should have been a correction, but the government is supporting house prices and this could lead to increased sales to foreign buyers.
Eslake noted that house price rises over the past decade had been caused by restrictions on supply and generous tax breaks such as negative gearing.