Fall in investment will likely be a big drag on Australia GDP growth this year: Capital Economics

Quotes from Capital Economics:

- GDP probably grew by 0.7% q/q in Q4 last year in Australia, up from 0.3% q/q in Q3 (00.30 GMT). But this should not be taken as a sign that Australia is passed the worst. 

- Indeed, it looks as though the boost to growth in Q4 was because investment fell by much less than in Q3. Larger falls in both mining and non-mining investment this year will be a big drag on growth. 

- We expect that a more sustained slowdown will result in GDP rising by just 1.8% in this year as a whole, down from 2.7% last year.