Kalgoorlie It is some time since I put fingers to key board to comment on our market and how it is being affected by occurrences around the World. And for very good reason, we are in such a rapidly changing economic environment that it is difficult to get a feel for where the Western economies and China are heading and how they will impact on us in the Eastern Goldfields.
It is encouraging to be able to say that at the end of 2012, which has been another tumultuous year globally, Kalgoorlie Boulder has come through pretty well.
The best we can suggest with Europe and the US is to maintain a watching brief. My feeling is that there will be a few more bumps in the road for the likes of Greece, Italy, Spain and others in the EU, but that we have probably experienced the worst of the impact on the global economy which now seems to have settled down to a generally lower level of activity. Over time it has to have some good upside globally!
The US Presidential election is now over and we think that we are likely to see a slow but steady recovery in the US economy, so some upside from here as well.
China now has its new leadership in place and as far as I can see from press commentary it will be more of the same. China still has a big gap to bridge between its growing wealthy middle class and its rural poor so there will be ongoing infrastructure development which is a huge consumer of steel and energy. It seems the iron ore companies are quite confident of the ongoing strength of their commodity exports to China which is good news for us in the Eastern Goldfields.
Check back in the coming days for more info … next article … Looking closer to home how are our commodities faring?
