Australia will not avoid recession says the nations treasurer

Australia will not avoid recession says the nations treasurer

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One of the worlds strongest economies, Australia, is in all likelyhood sliding into recession, according to the nations treasurer,

(visit the link for the full news article)

The economy of Australia is a prosperous, Western market economy dominated by its services sector (68% of GDP), although the agricultural and mining sectors (10% of GDP combined)[account for 57% of the nation's exports.


The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu. The Australian Securities Exchange and the Sydney Futures Exchange are the largest stock exchanges in Australia.


Australia is one of the most laissez-faire capitalist economies according to indices of economic freedom. Australia's per-capita GDP is slightly higher than that of the UK, Germany, and France in terms of purchasing power parity. The country was ranked third in the United Nations 2007 Human Development Index and sixth in The Economist worldwide quality-of-life index 2005. The emphasis on exporting commodities rather than manufactures has underpinned a significant increase in Australia's terms of trade during the rise in commodity prices since the start of the century. Australia's balance of payments is more than 7% of GDP negative: Australia has had persistently large current account deficits for more than 50 years.Australia has grown at an average annual rate of 3.6% for over 15 years, well above the OECD average of 2.5%


www.--.com
(visit the link for the full news article)

The whole world will be in Recession.
No country can escape it but some will fair better off than others.
That is until they start another little war to boost the economy again.
But you can only do this so many times really.
They have done it to many times already.
I don't think there little planned war will work this time.

Every country relies on each other so all will suffer.

I live in Canada and we have a good economy and people think everything will be ok here but with the trade we do with the states and the fact that we've lost a lot of manufacturing sector jobs means it will hurt here too.

reply to post by stewartw2

Australia will not avoid recession

You have to thank Kevin07 for that.

what good are allies if you can't bring them down with you.


Welcome to the party Australia

courtesy of the Red, White, and Blue.....

Australia's recession won't last long. I wonder if there's a co-relation between the performance of the cricketers to the economy.

You know - like the AC/DC - UK recession coincidences.

But back to Aussie, remember, Astralia is rich with mineral assets, new mines are being planned (even one bigger than Roxby Downs), it's growing industry according to the country's masters BHP.

OK, other than that there's not much else, although I did hear a rumour the 09 HSV Holden will be a ripper and should sell well in the Middle East.

Originally posted by Mr Gunter
Australia's recession won't last long. I wonder if there's a co-relation between the performance of the cricketers to the economy.

You know - like the AC/DC - UK recession coincidences.

But back to Aussie, remember, Astralia is rich with mineral assets, new mines are being planned (even one bigger than Roxby Downs), it's growing industry according to the country's masters BHP.

OK, other than that there's not much else, although I did hear a rumour the 09 HSV Holden will be a ripper and should sell well in the Middle East.

Australia is exporting uranium, and the price $$$ that countries will pay for the cost of uranium is high. Then again, Kevin07 will sell out Australia to sell whatever at a cheaper rate then other countries.

Originally posted by gordonwest
reply to post by stewartw2

 

Australia will not avoid recession

You have to thank Kevin07 for that.

Ridiculous. I find it hard to blame a government that has been in for 12 months. If we go into recession, it will be because a lack of demand from China because of a lack of demand from the USA. That, added with the credit squeeze (companies are having trouble settling ship loads due to hard to access credit).

It will have some impact, however we are a long way from recession. Growth is still predicted to be around 2%, inflation is falling and we still have plenty of room to move on interest rates to increase demand. Unemployment is currently 4.4%.

The surplus (yes our government still has a surplus) is predicted to be around $5 billion dollars (still around 0.5% of GDP) in July next year. We are not in the position of many nations as yet, and I doubt we'll end up there. We'll get hit, but if we go into recession it will be light on compared to the rest of the world.

Originally posted by gordonwest

Australia is exporting uranium, and the price $$$ that countries will pay for the cost of uranium is high. Then again, Kevin07 will sell out Australia to sell whatever at a cheaper rate then other countries.

Correct me if I am wrong, but I am pretty sure the government does not set the uranium price. They give a contract to a miner, and they sell it at the going market rate.

The government benefits via company taxes etc.

Actually i thought i hear on the news tonight that they think we will have a deficit of about $900 million. which to be quie honest aint that bad at these times. i'm sure we will be in a biger deficit for this financiel year but hey. It wouldn't matter to me if we were in the -$20 billlion or so. as long as those billions are to help the economy, build infrastructure, help businesses, keep australia moving.

Originally posted by DaRAGE
Actually i thought i hear on the news tonight that they think we will have a deficit of about $900 million. which to be quie honest aint that bad at these times. i'm sure we will be in a biger deficit for this financiel year but hey. It wouldn't matter to me if we were in the -$20 billlion or so. as long as those billions are to help the economy, build infrastructure, help businesses, keep australia moving.

That would have been NSW and their 'mini budget' today. NSW is known to have been down, almost recession like for a while.

Australia has been running as a two speed economy for a while. NSW is struggling, whilst Queensland and WA doing very well because of mining.

How many of you LIVE in Australia? Well I do.

My dad has been predicting the crash for a long time. Everything he has told me in the past two years has come to pass eg; house prices dropping, world finance crash, mines closing in Western Australia. It's happening. He became a self funded retiree at 52 and is now 63, so he pays close attention to the markets.

Anyone who thinks it wont affect their country is living in a dream. It's a trickle down effect. WA is the state that brings the biggest income to Australia - through mining. In the last 10 years China has relied on western powerhouses like the USA to buy it's exports and it's China that buys most of Australia's raw ore to MAKE these crappy exports. It is ALSO China that has has cancelled several mining contracts for Aussie iron ore because the US is importing less of their products due to the market crash. Thus 4 mines are now closing...first of more I would think.

The boom-time is over folks...even in Oz. I'm just glad that I don't have a mortgage or loans for depreciating assets - like cars. More good advice from my dad, 'NEVER take out a loan for a depreciating asset!!"

Originally posted by swinggal
How many of you LIVE in Australia? Well I do.

I am in Australia as well, and like your dad I predicted all of this around 2 years ago as well. It is still an unknown how badly Australia will be effected. It all depends on whether the crisis settles down or continues to fall.

It will be a very interesting next 12-18 months.