The International Monetary Fund has singled out Australia as having a strong economic outlook while the rest of the developed world faces a bleak immediate future.
Prime Minister Gillard says the IMF assessment is a “glowing endorsement” of her government’s management of Australia’s economy.
Lincoln Humphries reports.
The IMF says the world’s shaky recovery from the global financial crisis has stalled and there is once again danger of global recession.
Economic volatility in Europe is a key issue, disaster in Japan was another.
And while the IMF says Australia is a good position, there are some difficult times ahead.
Professor Adam Clements, Queensland University of Technology: “I certainly think reductions in growth, commodity price strength, more so as growth weakens, is certainly going to have an impact on the Australian economy.”
That commodity price strength is set to continue for the forseeable future.
Minna Knight, Director Australian Mines and Metals Association: “We’re looking at a further 60,000 jobs within the next two years so from a development perspective and certainly from a project perspective, we’ve got some great projects coming online and the industry is feeling well placed in terms of taking the sector forward.”
Unlike the booming resource sector the construction industry is struggling.
According to the State Opposition more than 7000 jobs have been lost in the past three months and with growing speculation of another global economic downturn, that’ll impact local tourism as well.
Daniel Gschwind, CEO Queensland Tourism Industry Council: “Certainly tourism and travel will suffer immediately from a loss of confidence, we’ve only just recently rebuilt that confidence so it is a grave concern to us.”
It’s likely the world’s G20 financial leaders will discuss the IMF report when they meet in Washington this Friday.
Lincoln Humphries, QUT News.