Investment by the former is very high at present, and much more lies ahead. Outside the resources sector, however, business investment is relatively flat. In some cases this is due to the dampening influence of the high exchange rate, with the manufacturing and tourism industries particularly affected.
The second factor is that commodities make up a larger share of Australia’s total exports than is the case for Canada. Both of our countries have also experienced a pronounced cycle in mining investment. Not surprisingly, reflecting the larger movement in our commodity prices, the cycle has been bigger in Australia.