Australia’s mining boom isn’t over yet and the slowdown in China’s economy is likely to be “cyclical rather than structural,” according to HSBC chief economist Paul Bloxham.
In an interview with CNBC Bloxham said Australia’s economy was in “good shape” and the mining industry would continue to drive growth over the coming months.
“Mining investments are in the pipeline and will continue to support growth into the second half of this year and into the next,” he said.
Bloxham also said while the slowdown in China had dented commodity prices, the Asian powerhouse was expected to rebound and continue posting strong numbers.
But CNBC reports the outlook for China is mixed amongst analysts, and market researcher Barclays this week released an investor note warning the Chinese slowdown was “as much structural in nature as cyclical”.
Earlier this year Resources Minister Martin Ferguson said the mining boom was over and the high commodity prices experienced over the last few years were unlikely to be repeated.