ID :
79892
Mon, 09/14/2009 - 18:06
Auther :
Shortlink :
http://m.oananews.org//node/79892
The shortlink copeid
Aussie economy is best performer: Swan
(AAP) - Australia is in better shape than the rest of the world one year after the collapse of Lehman Brothers, despite rising unemployment, Treasurer Wayne Swan says.
The demise of the US investment bank was the breaking point of a growing global
financial crisis that triggered a $US30 trillion ($A35 trillion) slump in global
share prices and caused debt markets to freeze.
So far some 12 million people have lost their jobs in the resulting global recession.
New data released on Monday showed that while lending in Australia remains erratic,
it is performing better than a year ago.
"Australia through a combination of circumstances, including economic stimulus and
fantastic community efforts, has come through this global recession in far better
shape than the rest of the world," Mr Swan told parliament.
But he said the International Monetary Fund (IMF) has warned it is dangerous to
assume the crisis is over and that Australia is still facing big challenges,
including rising unemployment.
Some 200,000 jobs have already been lost in Australia in the past year.
"Regrettably I think unemployment will continue to rise as the effects of the global
recession do continue to wash through our economy," Mr Swan said.
Prime Minister Kevin Rudd used the anniversary of the Lehman collapse to recount the
dark days of the financial crisis, which was sparked by the breakdown of the US
subprime mortgage market in mid-2007.
"We did stand at the abyss of the implosion of the world's financial system," Mr
Rudd told parliament.
"Global markets had panicked and had panicked comprehensively."
He said the "extraordinary dimensions" of the crisis needed an equally extraordinary
response by governments globally and nationally to avoid a repeat of the Great
Depression
"Thanks to the leadership demonstrated by the United States under President (George
W) Bush, then secondly continued under President Obama through the agency of the
G20, the global economy so far has avoided that outcome."
He also again defended continuing the government's stimulus strategy in the face of
further questioning from the opposition, saying it was consistent with advise of the
IMF, the World Bank and Treasury.
"It is a stimulus strategy which I would suggest those opposite, if they are honest
about it, is having a positive effect."
Data showed that while total lending fell 1.0 per cent in July and was 3.8 per cent
lower compared to a year ago, it is a far cry from the 30 per cent annual declines
recorded late last year.
"There is no doubt that over the last few months lending finance has turned a
corner. However, a sustained improvement is yet to take hold," Commonwealth
Securities economist Savanth Sebastian said.
But he said more confident consumers were starting to spend and borrow again, while
business conditions were returning to normal.
"However, the Reserve Bank would be more inclined to hold off interest rate hikes
until the economic recovery becomes more solid."
The demise of the US investment bank was the breaking point of a growing global
financial crisis that triggered a $US30 trillion ($A35 trillion) slump in global
share prices and caused debt markets to freeze.
So far some 12 million people have lost their jobs in the resulting global recession.
New data released on Monday showed that while lending in Australia remains erratic,
it is performing better than a year ago.
"Australia through a combination of circumstances, including economic stimulus and
fantastic community efforts, has come through this global recession in far better
shape than the rest of the world," Mr Swan told parliament.
But he said the International Monetary Fund (IMF) has warned it is dangerous to
assume the crisis is over and that Australia is still facing big challenges,
including rising unemployment.
Some 200,000 jobs have already been lost in Australia in the past year.
"Regrettably I think unemployment will continue to rise as the effects of the global
recession do continue to wash through our economy," Mr Swan said.
Prime Minister Kevin Rudd used the anniversary of the Lehman collapse to recount the
dark days of the financial crisis, which was sparked by the breakdown of the US
subprime mortgage market in mid-2007.
"We did stand at the abyss of the implosion of the world's financial system," Mr
Rudd told parliament.
"Global markets had panicked and had panicked comprehensively."
He said the "extraordinary dimensions" of the crisis needed an equally extraordinary
response by governments globally and nationally to avoid a repeat of the Great
Depression
"Thanks to the leadership demonstrated by the United States under President (George
W) Bush, then secondly continued under President Obama through the agency of the
G20, the global economy so far has avoided that outcome."
He also again defended continuing the government's stimulus strategy in the face of
further questioning from the opposition, saying it was consistent with advise of the
IMF, the World Bank and Treasury.
"It is a stimulus strategy which I would suggest those opposite, if they are honest
about it, is having a positive effect."
Data showed that while total lending fell 1.0 per cent in July and was 3.8 per cent
lower compared to a year ago, it is a far cry from the 30 per cent annual declines
recorded late last year.
"There is no doubt that over the last few months lending finance has turned a
corner. However, a sustained improvement is yet to take hold," Commonwealth
Securities economist Savanth Sebastian said.
But he said more confident consumers were starting to spend and borrow again, while
business conditions were returning to normal.
"However, the Reserve Bank would be more inclined to hold off interest rate hikes
until the economic recovery becomes more solid."
