19 November 2008

RBA official: Australia protected from global crisis

An official from the Royal Bank of Australia has said the Australian economy would withstand the global economic crisis because of the Rudd Government's fiscal policy and the lowering Australian dollar, reports the WA Business News.

RBA assistant governor (economic) Malcolm Edey said despite forecasts that the Australian economy would slowdown next year, it should be cushioned from the global crisis because of the impending $10.4 billion stimulus package provided by the government, the central bank's move to cut back interest rates to increase consumer spending, and the sliding Australian dollar against the major currencies. 

"All of these factors will help to cushion the effects of the much more difficult global environment in which we now find ourselves," Mr Edey told delegates to the Australia and Japan Economic Outlook Conference 2008 in Sydney.

Mr Edey said central banks and governments have been implementing all types of rescue plans that should help to stabilise conditions overtime, but that the Australian economy would expectedly still slow significantly next year.

According to the Australian, there have been concerns recently that the Minister for Immigration and Citizenship Chris Evans may have to cut back the record levels of Australian immigration in the 2009 Budget in response to the slowing economy.  As a result, potential migrants to Australia are encouraged to process their applications before the Rudd Government makes any changes to the migration quota.

"I'd envisage certainly that the migration program for next year would be smaller than this year," Senator Evans told a Senate estimates hearing in October.  "(But) no decision has been taken on that."

The Minister increased the migration quota this year by 31,000 to reach a record 190,300 visas for Australia, and comprised 133,500 skilled visa migrants. 

The Australian Visa Bureau is an independent consulting company specialising in helping people with emigrating to Australia.

Article by Jessica Bird, Australian Visa Bureau.

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