(20 April 2015 – Australia) ANZ chief executive Mike Smith has voiced his expectation that Australian’s need to accept that the iron ore boom is done, and that was never expected to continue forever.
Smith told a Bloomberg business lunch that the slowing down of Australia’s economic growth is in a way self-inflicted as supply started to far outweigh demand, especially as China’s economy slows down.
He urged other businesses to step up, saying there is more to the economy such as exports like tourism, education and agriculture which have potential to fill the void left by the resource sector decline.
“I think that we're obsessed by iron ore, and if that's not working then the whole economy's not working,” he said.
“That's not true.”
China is still set to become the largest source of foreign investment by 2030, representing a ten-fold increase on current levels, Smith said.
“It is easy to become transfixed by the issues of the day – softness in the resources sector, the state of politics, business confidence, and even the availability of slippers in my office.”