BlackRock positive on Australia

The latest BlackRock Sovereign Risk Index (BSRI) has treated the Australian economy positively, but it was an assessment based on the presumption of the Government delivering a Budget surplus.

Australia, in fact, moved up the BSRI rankings along with both China and New Zealand, with the BlackRock analysis noting that this country appeared to have weathered the slow-down in Chinese economic growth.

"When China sneezes, its raw materials supplier Australia catches a cold, investors say these days," the analysis said. However it said that in BSRI terms, "the lucky country appears to be taking its flu shots".

Related News: Poor advice tops FOS investment disputes

"It has remained largely immune to China's slowdown in economic growth last year," it said.

The analysis said Australia's steady march up the index accelerated in the most recent quarter when it jumped three notches to seventh place, mainly thanks to an improved primary balance.

"Increases in government receipts have more than offset an uptick in spending, and the country is expecting a surplus this fiscal year," the BlackRock analysis said.

The Treasurer, Wayne Swan, announced recently that the Government was no longer confident a surplus could be delivered.

Related Content

Aust Unity adds SMA to Federation platform

Australian Unity has added new separately managed account (SMA) products to its Federation platform.The company said the SMA products were the first i...more

First draft legislation omits thorny super issues

The first tranche of the Exposure Draft legislation for superannuation released by the Federal Government did not address the most controversial measu...more

Ex-Wickham CEO jailed for five years

Collapsed debenture issuer, Wickham Securities' former chief executive, Garth Peter Robertson, has been sentenced to five years' imprisonment after pl...more



Add new comment