The Australian economy and employment leads the
developed world as the OECD praises the effectiveness
of our stimulus package. Naturally, most Australians
feel very satisfied too!
The measures taken to secure our economy in the
face of the global downturn have won praise from
the Organisation for Economic Cooperation and Development,
and the results of the stimulus– although not
everyone approved – have ensured that our economy
avoided falling into recession, and boosting jobs
by about 1.5% through to 2010 in the process.
In contrast, the report says that 15 million people
have lost their jobs across the OECD since the end
of 2007 and the average unemployment rate within
the OECD will hit 10 per cent by the end of 2010.
In Australia our unemployment rate is about 5%,
and interest rate increases have been applied to
hold economic growth and inflation in check.
In such a situation, where we are the envy of the
world, and enjoying such a strong and secure economy,
you have to ask yourself the question: “Do
I feel lucky?”
Putting to one side the sheer size of the stimulus
and the speed of it, and that the implementation
could have been improved, view is that we are in
a very strong position as a result of the measures
that were taken.
Our banks and financial system remained strong,
company failures were limited, unemployment rose
slightly, housing process weakened for a short period,
and then came roaring back, and the resources demand
paved the way for the country as a whole to start
the recovery.
This is shown in positive consumer confidence,
as well as in the fact that 68% of Australians were
satisfied with the government’s response, the
highest across the OECD.
The fact that the government did manage us safely
through the crisis, and that two thirds of Australians
are satisfied with the response, must be a big lost
opportunity for the Labour government, as it reflects
on its disappointing showing in the election.
Property investors have been quick to capitalise
on our strong economic position and what it means
for the future. As the First Home Buyer’s grant
has been wound back, and as property prices and interest
rates have put pressure on private buyers, investors
have jumped into the gap, and now account for about
one in three of all property sales.
Many investors are viewing this as a perfect time
to increase their property assets, particularly as
housing prices and interest rates look to be stable
for the foreseeable future, and the heat and pressure
of the 2009 market has eased.
Underpinning everything is our strong jobs record
and strong consumer confidence, which is another
measure of how satisfied many Australians feel about
our current situation.
So if you feel as lucky as I do to be in a county
that has emerged for the GFC in such great shape,
what should we be doing about it?
Our suggestion is to firstly reflect on how different
things might have been, then to appreciate how much
we have going for us, and then plan and take action
that capitalises on our good fortune.
Adding to your portfolio of investment properties
is one such action, which we would be only be too
pleased to help you achieve.
(Source: Murdoch, S. Australian economy
runs at fastest pace in nearly two years. The Australian,
3/3/2010).
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