Australia’s Economy Can Emerge Stronger From Crisis
Australia’s economy can emerge stronger from the global recession provided the “right” action is taken internationally and in the domestic market, Treasurer Wayne Swan said. “While there are no quick fixes to this global recession, with the right action globally and here at home, we can come through this stronger and more prosperous than before. Australia’s retail activity and jobs have benefited from the government’s economic stimulus plan”, he said. Australia’s economy shrank in the fourth quarter for the first time in eight years as exports and housing slumped. Gross domestic product fell 0.5 percent from the third quarter, when it increased 0.1 percent. Data released last week showed that both the U.S. and U.K. economies contracted by 1.6 percent in the final three months of last year, their worst performances since the early 1980s. The nation’s financial system has so far weathered the global crisis “much better” than those in many other countries, while the housing market has also held up better, Swan said. A temporary guarantee of borrowing by state governments, announced last week, will support jobs and protect infrastructure development plans, he said.