I was over at CNBC today and noticed that there was much excitement about Australian third quarter GDP having grown 0.9% QoQ on the back of ….. mining exports! Yes, you heard that right. At the same time, gross fixed capital formation declined in the third quarter because of …. decline in mining related investments!
Found out that Australian exports to China bottomed out in the first quarter of this year, in AUD terms. They have been rising since then. As of September, they were up 13.7% YoY. So, why is China buying stuff from Australia? If so, what has changed in China? Is this a sign of rebalancing? I don’t think so.