Australia, The Economic Crisis... What Crisis??

With over a reported 42000 people emigrating from Ireland in 2011 many have decided to make the move down under to Australia. Is it for the sunshine, the laid back lifestyle or because Australia has remained relatively unscathed by the current economic crisis compared to many other countries, giving young professionals more opportunities. During 2011 I spent several months living and working in Australia and found it surprising how the daily life and Australian economy appeared to show little signs of a crisis.

In the past Australia has experienced periods of steady economic growth due to its diversified economy and continues to be a fast growing, stable and developed modern economy. In 2011 it was the 13th largest national economy based on nominal GDP. The effect of the recent economic crisis appears to be considerably less than in other countries such as USA or Ireland. There has been little intervention by the RBA (Reserve Bank of Australia) or the Australian government, with banks continuing to be profitable and in a relatively healthy condition. Although the recent global market did lead to falls in share prices of Australian banks and tightening in funding conditions the overall effect has been rather modest. Julia Gillard, Prime Minister of Australia said in 2011 that, ‘Australia’s economy was not knocked off course by the global financial crisis, nor by the floods and natural disasters we sustained over the summer,’ and she has consistently shown confidence in the Australian economy.

Over the coming weeks I intend to investigate some of the different aspects of the Australian economy, how the global recession has affected them and what, if any, effects there will be in the future.