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Australia's top finance official, Treasury Secretary John Fraser, said Wednesday the outlook for Australia's economy was still "finely balanced, " despite a strong pickup in prices for key exports like iron ore. While there were positive signs in the global economy, it was too early to assess what the impact of U.S. President Donald Trump's protectionist policies might be, he added. "Australia's economy is still working through a complex transition away from mining investment and towards broader growth, in an uncertain international economic climate," Mr. Fraser told lawmakers during budget oversight hearings. Australia's plan to shift investment away from mining to focus more on other industries like services has been slow to materialize. Companies scaled back investment spending by 2.1% in the three months through December from the quarter before, which was worse than the 0.5% decline forecast by economists. Mining companies have chosen to use a recent surge in profits largely to reward investors, not launch big new projects. British-Australian miner Rio Tinto PLC increased its dividend and announced a $500 million share repurchase a couple of weeks ago after saying it earned $4.6 billion in 2016, swinging from a year-earlier loss. BHP Billiton Ltd., the world's largest miner by market value, doubled its dividend after reporting a profit of $3.2 billion for its second half. Many of Australia's biggest companies are hoarding cash.