Costello despite the efforts by Howard to downplay his efforts deserves credit for the position that the Australian economy now finds itself. As Peter Hartcher stated in his article this week,
"Keating imposed the structural reforms that woke Australia from its economic coma and created the beginnings of a modern, competitive economy. And Costello imposed the discipline to prevent the political system from bogging the country down in a mire of government debt"
There is no doubt that without Costello the Howard government would have blown a considerably higher proportion of the commodities boom. The result is that Australia has been able to cope with the recession better than any o
ther developed country due to the subsequent budget surpluses and negative public debt. The following graphs from the Federal Treasury show Australia's Economic growth to be higher than all of the top 20 economies and to have lower net public debt than all of the top 5 economies.
However the question that needs to be answered is - Is Australia out of the recession?? (give the poll a go). After reading Gittins from the 13/06/09 a number of points are raised. Our recent trade performance has been exceptional- why? Well the Australian dollar feel sharply which meant that exports received an advantage and imports were higher. Combined with lower demand for imports by Australians in a downturn has meant that our trade performance has been very good. In addition during a recession manufactured good demand falls- now we our economies structure is weighted towards services and commodities. The demand for these has been steady.
However with the dollar heading back to 80c/US, business confidence picking up and thus higher imports combined with the prices gained for our exports sliding the future for Australia is not rosy yet.
Interesting blog...
ReplyDeleteI believe that even though it can be said we fortunately missed out on the recession, it is clear that we are in one. . whether were on our way out of it in my belief will be determined in the next 6 months and where the other economies of the world are from now onwards...Finally, i believe, long term the future is bright for Australia!
What a milestone, Costello FINALLY bows out, but i'm not holding my breath. A commendable history of economic managemnet, but far from flawless. Nonetheless, he did place Australia in a good position coming into this recession. And I must say i kind of pity the guy. He was completely shafted by Howard, SNAKE!! And I am certain he will long be considered the 'Prime Minister we never had'.
ReplyDeleteAs for a recession, I think we are undeniably in one. Never mind waiting around for two quarters of negative growth, look at the umenployment figures! Like Gittins himself said, 'try telling the burgeoning jobless' that we're not in a recession.
My only fear is that the cycle of debt inducing Labor governments are follwed by debt repaying Lberals and so on. Poor Rudd, the GFC hasn't allowed him to throw off the shackles and stigma of Labor being poor economic managers. I only hope Asutralia doesn't squander this chance the mining boom has given us. We need to diversify and expand our export base beyond primary industries if we Australian's are to continue to enjoy such a high standard of living.
Lets just hope our Government's realise this so we can take full advantage of the global upturn when it comes and not be left in the dust of other heavyweights in the global economy as they prepare to shoot off once all this doom and gloom diappears.
James J
What a milestone, Costello FINALLY bows out of Federal Parliament, but i am not holding my breath. A commendable history of economic managemnet, but far form flawless. After all he did position Australia well financially, allowing the Australian economy to deal with the GFC with such gusto. I must say though, i kind of pity the guy. He was completely shafted by Howard, SNAKE!! But i am sure he will long be considered the 'Prime Minister Australia never had'.
ReplyDeleteAs for Australia being in recession, i think we are undeniably in one. Never mind waiting around for two consecutive quarters of negative growth, look at the unemployment figures!! Like Gittins himself said, 'try telling the burgeoning jobless' that we are not in a recession.
My only fear is that the cycle of Labor's big spending will be followed by a Liberal govt that must come and mop up the mess by cutting all investment. Next comes a build up of poor and outdated infrastructure, health and education systems, the list goes on. Then Labor is back in and sure enough they go on a shopping spree and the cycle continues. This has proven to be a really unhealthy trend for the long term sustainability of Australlia's economic growth and industries alike.
And poor Rudd. He has failed to truely throw off the shackles and stigma of Labor being poor economic managers. The GFC couldn't have come at a worse time. Lets juts hope that this time round our Government makes full use of the upturn that will surely come. We need to expand our export base beyond primary industries... or else i fear we will again be left in the wake of the other global economic heavyweights that are preparing to speed off when the global economy picks up.
JAMES
http://www.youtube.com/watch?v=Xn9fgcSuvmA
ReplyDeleteenjoy mr sutton
Andrew unfortunately these people make the decisions, a snake may do a better job.
ReplyDelete