Australia can avoid recession
Australia can avoid a recession but the impact of the global downturn on the economy is uncertain, according to the deputy governor of the Reserve Bank, Ric Battelino.
Battelino was speaking at the Seventh Insolvency and Trustee Service Australia (ITSA) bankruptcy congress on recent economic developments and its effect on household finances.
Australia avoided the 2001 recession due to its links with Asia, and those links are stronger now than they were seven years ago, Battelino said.
Long-term growth prospects for China are good, for which Australia will continue to be a major supplier of materials.
The job of managing the economy will be more difficult due to the presence of inflation, but the slowing economy and reduced interest rates will help to combat this.
Battelino said while it was hard to predict what the world economy would do, it was important not to be pessimistic about Australia’s prospects. The economy is in good shape and the housing sector is still in good condition, with consistent underlying demand.
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