Australia Economy

 

 

 

 

 

 

Australia Economy

 

 

Economy in Australia

Australia’s economy forecasted to encounter a recession this 2009 has proven itself to be quite resilient. A combination of government stimulus packages as well as the influence of the economic growth of China has kept the Australian economy from going down into the feared recession.
 

 

Business and economic analysts are highlighting positive key points, showing the world that Australia’s economy is not headed for a global downturn.
First unemployment rates are estimated to be in the 5.7 percentile.

 

Well below the Federal governments first estimates for the 2009 forecast of 6%. This also shows that the rate of ascent is slow to take place leading experts to consider the projected 8% for 2011.
Consumer level of confidence begins to rise as debt level fall and savings return to early 1990’s bracket. Consumer monitoring register several boosts demonstrating an improved sentiment from the consumer retail level.

 

In the past 9 months, the span of residential construction and individuals building their homes reach a 61 percentile. Housing affordability has also improved with record low interest rates as well as reasonable mortgage extensions made by local banks. The annual Australia's economy inflation rate has declined to a 7 year low. Annual inflation of 2.4% is normal and it is calculated that despite current price rises in many spending groups, inflation will continue to stabilize in the RBA's marked range of 2-3% and maintain this for another year. Definite signs of a upturn are emerging in the Australian economy, but confidence is still well within the baseline as confidence has been sternly impacted.

Australia Economy
 

Predictions of extreme recession and even depression of the Australian economy have been overestimated. Recovery is viewed to continue but it is foreseen as slow and steady.

An optimistic 'V' shaped recovery is not expected but a more extended "U" curve is likely to be seen. Economic experts do not necessarily see this as a negative however.

Ultimately the strength in consumers and businesses consolidating their positions and finances will not be returning quickly to the extremes seen in their financial exuberance experienced in the last cycle.
 
Australian Economy

In the past quarter, reports in the international sharemarkets, including those of the Australian economy, have rallied from their early March lows. Countries such as the US, UK and European economies persist to contract, the rate of decline is relatively slowing.

This may indicate a bottoming is near.

 

China and Australia economic reports indicate a step into the recovery phase. The present period of consolidation is now necessary for sharemarkets to shift to the subsequent level.

The catalyst may well be a better than anticipated report season which has already been seen in the US.

 

The Australian economy represents a minute fraction of the global economy, but it should inspire assurance in local investors of the potential recovery in our investment markets.
 

 

 

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