Growth in economic activity in Australia’s major trading partners has remained a little below average over the first half of 2016. Despite this, commodity prices overall have increased since the beginning of the year, partly because of reductions in supply by some high-cost producers of commodities, including iron ore and coal. The outlook for overall growth in Australia’s major trading partners and the outlook for the terms of trade are little changed from three months ago. The terms of trade are forecast to remain close to current levels over the next couple of years. This is around 35 per cent lower than their ... (full story)