If housing construction is very strong at the same time that the resources sector is expanding, there will be competing demands for a range of skilled workers and specialised services. Managing these competing demands and ensuring the adequate supply of workers with appropriate skills will be a challenge. Inflation The third issue is inflation.
In all of the advanced economies, inflation – in both headline and core terms – has fallen and, in most cases, is currently below the relevant target or medium-term average. Given the considerable excess capacity that currently exists, most of these countries are likely to continue experiencing disinflationary pressures for some time yet, and have inflation rates that are below target.