Dear Reader,
For your reference, the three main problems with the Australian economy are:
We covered the low and declining level of the Australian economy’s economic complexity in Part 1. We will now take a look at their enormous amount of household.
Part 2: Enormous household debt.
Australia has the second highest household debt to household income of any country in the world at 250.8%. This means that for every $1 of income the average Australian household earns, they borrow $2.50. This puts us in the company of countries like Switzerland (275.9%), Denmark (235%), Norway (202%), The Netherlands (199%), Canada (172%), and South Korea (184%).
This seems like decent company to keep, but the problem Australian households face is that the other countries in this list have substantially more resilient and diverse income streams driven by the economic complexity of their industries. Switzerland and South…