Hopes rise for Australian economic recovery
Figures released by the Australian Bureau of Statistics confirming that Australia is not in a recession, in conjunction with the Reserve Bank’s decision to keep the interest rate at three percent, have raised hopes that Australia can weather the global economic downturn.
RBA governor Glenn Stevens yesterday pointed to a stabilising global economy, although he said recovery would be slow.
“The considerable economic policy stimulus in train in most countries is helping to contain the downturn, and should support an eventual recovery. The turnaround is clearest in China and some other emerging countries. Recovery in the major countries is likely to take longer to begin and be slower when it does occur,” he said.
However, rising unemployment is of continuing concern.
“I don’t think we’re out of the woods yet. I still think the unemployment rate is going to rise but the data suggest the unemployment rate will be more modest,” remarked Adam Carr, economist for financial data agency ICAP.