Australian economy defies logic (1 Viewer)

[S.H.O.D.A.N.]

Australia posted the 2nd biggest trade surplus on record last quarter at $2.1 billion. Economists had predicted $0.7 billion. The surplus is big enough that it may prevent negative growth for the 1st quarter of this year, defying the 'inevitable' technical recession.

Australia's exports grew 33% in the period. Exports in Japan fell 49%, fell 26% in China, fell 18% in South Korea, and 24% in Singapore.

Trade surplus a recession buffer | The Australian

Our dollar is currently at 71.62 US cents.

I can think of worse countries to be right now.

 

[Sir-BigBoyJames]

do we blame labor or liberal?

 

[whatashotbyseve]

Rudd can hardly take much credit for our exports though.

 

[Lentern]

Rudd can hardly take much credit for our exports though.

If he can't take credit for someone elses achievements he's got no business being in politics.

 

[kokodamonkey]

since when did we have trade surpluses?

 

[S.H.O.D.A.N.]

since when did we have trade surpluses?

Since our dollar fell, our export competitors sunk into recession, and our domestic appetite died in the arse.

I.e.: roughly since the GFC started.

 

[kokodamonkey]

Shameful dollar. i hope it goes right up again.

 

[S.H.O.D.A.N.]

Shameful dollar. i hope it goes right up again.

Um, our low dollar is one of the major factors in Australia posting a trade surplus and avoiding negative GDP growth right now. And yet you want it to rise?

 

[kokodamonkey]

Um, our low dollar is one of the major factors in Australia posting a trade surplus and avoiding negative GDP growth right now. And yet you want it to rise?

Better for those of us that deal online on ebay etc

 

[S.H.O.D.A.N.]

Interestingly, the Australian sharemarket has now risen so much that it is in positive territory for the year (i.e. higher than it was when 2009 started).

Hopefully it lasts.

Aussie dollar rises to 3-month high; shares seen up | The Australian

 

[kokodamonkey]

Still needs to broadly rise significantly higher imo.

 

[mrsajmon23]

do we blame labor or liberal?

Islam?

 

[S.H.O.D.A.N.]

Islam?

Fucking Islams.

 

[mrcalkin]

Oh it will rise, but the rises will mainly reflect the weakening of the US dollar.

All the world's currencies will loose significant purchasing power, just at different rates.

I must agree with this statement.

I think this is to due to australians spending alot less on online stores around the world. I wonder how much Australian Economist are regarded around the world now.

 

[zstar]

The Australian economy is chuck norris.

 

[S.H.O.D.A.N.]

Australia has the 2nd lowest level of government debt in the world (at 10% once Rudd's stimulus packages go through) and our government debt (bonds) is the most sought after in the world (compare with the horrible performance of America, Japan, and Britain's bonds).

World-Beating Australian Bonds Rally Is Luring Daiwa (Update2) - Bloomberg.com

Australia seen as safe bet as demand for bonds soars | The Australian

 

[Gloves]

Australia has weathered the storm pretty well.

But I think if Rudd keeps at his money splurge, we might find ourselves in a bit of trouble.

 

[S.H.O.D.A.N.]

Australia has weathered the storm pretty well.

But I think if Rudd keeps at his money splurge, we might find ourselves in a bit of trouble.

I don't think so. As those articles point out, even after Rudd's 2 stimulus packages, revised budgets, falling tax revenue, and lender guarantees, we are still "only" at 10% of GDP in terms of debt. Ideally no debt would be lovely but it's certainly worth keeping things in perspective whatever your feelings on the issue (something Turnbull seems incapable of).

For reference, during the 1990's recession, our debt level was at 20% of GDP.

As long as Rudd doesn't do any more cash handouts I'll be happy with another stimulus package (especially if it's got provisions for education, healthcare, and science).

 

[Will Shakespear]

so we're not doing too badly, relatively speaking

kinda puts a hole in Krudd's "OMGCRISIS" justification for every thing he wants to rush thru parliament, right?

 

[incentivation]

I don't think so. As those articles point out, even after Rudd's 2 stimulus packages, revised budgets, falling tax revenue, and lender guarantees, we are still "only" at 10% of GDP in terms of debt. Ideally no debt would be lovely but it's certainly worth keeping things in perspective whatever your feelings on the issue (something Turnbull seems incapable of).

For reference, during the 1990's recession, our debt level was at 20% of GDP.

As long as Rudd doesn't do any more cash handouts I'll be happy with another stimulus package (especially if it's got provisions for education, healthcare, and science).

Of course our strong fiscal position is due to the policies of the current government...