[1] A large body of literature has attempted to explain the underwhelming pick-up in investment and has attributed it to a range of factors, which I will spend some time discussing. Australian non-mining investment (in real terms) is currently around 17 per cent higher than it was at Q1 2008.
In addition, our economy’s resilience to potentially adverse developments in the international environment is confirmed by the high level of FX reserves of EUR 13.4 bn at end-2019, which is their maximum level at year-end in the period since 2000, when data began to be monitored in this manner. The level of FX reserves is adequate in terms of both their size and structure.