It is predominantly of our own doing.
We will be faced with a year and a half of virtually no growth in this economy. We should not have had interest rates ever getting to 7.25 percent. The monetary policy cycle is far too aggressive.
The deterioration in the trade balance appears to be being arrested -- a lower currency and weaker domestic activity will go a long way to improving the current account situation, but it will take some time to show through.
Any excuse to sell, when sentiment is running this hot against it.
This outcome (0.2 per cent growth) makes it more certain the Reserve Bank has finished lifting rates.
The first of those risks prompted the bank to tighten late last year when the housing market threatened to take off once more. However, it is the risk of a monetary policy-induced slump that looms larger.
We are in spitting distance of recession, if not already sitting in it.
When the housing market goes, there will be little left to sustain the economy in the short-term because it will take time for the lower currency to benefit the economy.
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