20 February 2009

Australian economy may ride out the storm by the end of the year

According to the Governor of the Reserve Bank of Australia, Glenn Stevens, the Australian economy would not only remain resilient to the global recession but would end up benefiting from its current economic contraction.

Bloomberg reports that the current interest rates are among the lowest on record, and with the Government's second stimulus package ready to inject the economy with new life and job protection, the Australian economy would be ready to withstand the continuing recession damaging Europe, US, and Japan.

Yet there is still "scope to do more, if more is needed", Stevens said to the parliament’s economics committee today in Canberra.

"Our interest-rate structure is very low by historical standards," Stevens added, which "will be a very powerful" stimulus on the economy.

As Australia's major trading partners ride out their recessions, and Australia's major minerals trading partner China shows signs of improvements, Stevens says all the Australian Government can do is adjust its policies accordingly and ride out the storm with them, and will hopefully reap the rewards from a strong recovery afterwards.

"The Australian economy will come through this very difficult period, certainly not unscathed but well placed to benefit from a renewed expansion," he added.

Meanwhile, an Australian demographer Bob Birrell from the Monash University has warned the government this week that it needs to seriously reconsider the record numbers of people emigrating to Australia.

Experts predict that by 2010, an extra 300,000 people would join the unemployed rate in Australia, and that the records numbers of skilled migrants moving to Australia annually is merely adding to the problem by taking the jobs from local workers.

The Minister for Immigration and Citizenship Senator Chris Evans has not commented recently on his plans for the migration quota, except that it would not be changed until the release of the 2009-10 Budget.  However, a spokesperson from his department has indicated that the number of temporary Australian visa holders moving to Australia would continue to reduce inline with the economic situation.

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