FP BLOG

The Australian Economy In 2011

The year 2010 brought global economic instability to the world. Some countries were affected more than others in this massive financial crunch. Australia has been able to hold its own much better than many other countries around the globe. Yet, the remainder of the world economy has had its effect on this beautifully diverse country Down Under.

The economic year 2011 is expected to improve slightly for the world in general, with some countries such as China seeing a 10% growth rate throughout the year. The Australian dollar has remained strong during this crisis, and it is expected to stay strong in 2011.

Retail sales will remain slow during the first half of the year but should pick up to some degree in the last half of 2011. It is expected that the labor market will remain strong and grow in the latter part of the year. Due to this, unemployment rates should see a slight drop, with retail sales then on the rise.

One of the impacts on Australia has been the shift toward fiscal conservatism. People are spending less and saving more. This is a global phenomenon that has impacted our friends Down Under. Loose economic policy and a certain degree of risk taking is what brought on the global financial crisis. The pendulum has swung in the opposite direction as the world looks to find a healthy balance in the economic realm once again.

Besides the extreme weather in Australia, with a vast amount of flooding during 2010 and into the current year, Australia has presented itself to the world as a fairly economically stable country. The expectation for 2011 is that the Australian dollar will remain strong and everything else surrounding the economy will take an upward turn for the better.