Australia - Recession? What Recession
Australia, long considered a financially strong and politically stable nation,
which is located in the heart of the Asia-Pacific region, has finally come of age.
The leading daily financial is cheap and Australia is home to Besides this, India is hot on the
publication in Australia, The some of the world’s largest resource heels of China in terms of it’s
Australian Financial Review was and mineral deposits. appetite for global commodities,
recently quoted as saying: which can be seen by the recent
“Australia’s thriving resources $25 billion deal Australia signed
“… Australia’s economic sector, comprising of minerals with India to supply Liquified
performance means [it] is poised and petroleum, is the country’s Natural Gas.
to become a global investment largest single export sector. In
hotspot over the next 5 years.” 2006–07, over 80 per cent of its On a different note, unlike the
US and Europe, Australia has
In the same article, Glenn not suffered a banking crisis and
Stevens, the Governor of the Australian’s have not had their
Reserve Bank of Australia, says: wealth smashed by falling property
prices, due in part to the massive
“There are rather few countries undersupply of residential dwellings,
that have the potential to offer which is predicted to only get worse.
[such an] attractive proposition to
international capital, … over the
Naturally, this under supply
years ahead”.
is putting more upwards
pressure on both house
So you may ask why Australia
is such a hotspot?
prices and rents.
Great if you own property or
Particularly when the country in output was exported, accounting
intend to buy in the near future, but
question is often referred to as “the for approximately 49 per cent of
unfortunate for those who try and
lucky country” and has a perception total goods and services exports.
get on Australia’s property ladder in
of being a place where Aussies laze During that period, the minerals
years to come.
around on pristine white beaches and petroleum industries produced

all day long, basking in the warm over eight per cent of Australia’s
“Australia, with its record of good
sunshine and throwing another GDP and accounted for 63 per
economic management, its strong
shrimp of the barbie when they cent of Australia’s merchandise
public finances, it successful
so please. export earnings. Australian coal,
prudential regulation and reliable
liquefied natural gas, iron ore,
legal system, its open markets and
Well it has to do with a number copper, diamonds, zinc and many
its links with Asia, stands out as a
of factors, including, Australia’s other minerals provide the essential
natural target for global investors
proximity to China and the fact that ingredients of growth for many
searching for reasonable rates of
China is desperately trying to catch nations.”
return in a world of weak profits
up to the rest of the world. Shipping
and high risks.”
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