World Economy

Australia Fairing Well

Australia Fairing WellAustralia Fairing Well

A key economic report has praised Australia’s performance, given the ongoing slowdown in China and the overall state of the global economy.

Deloitte Access Economics’ latest Business Outlook stated that, while short-term growth in Australia would likely be modest, the economy was managing to weather most challenges, AAP reported.

Deloitte Access Economics partner Chris Richardson said Australia has kept growing, despite a number of hurdles.

“Don’t forget that China’s had a substantial slowdown, that things like iron ore prices and coal prices are well below where they were,” he observed.

“That combination means that some of the huge construction jobs in mining—they’re drawing to a close.

“That’s a pretty tricky backdrop and against that backdrop, Australia’s actually done very well.”

“Yet this skew in world growth—slower emerging economies, and a faster rich world—makes it less friendly to Australian prospects.”

Richardson, however, noted that Australia’s output and income growth should be moving back onto the front foot in 2017 and even more so in 2018.

The report suggested the rout in commodity prices and softening economic conditions in China would remain the biggest challenges for the domestic economy in the short term.

New South Wales State Treasurer Gladys Berejiklian welcomed the report and said it highlighted the strength of the NSW economy.

“The DAE Business Outlook states that there is a lot to like about conditions and prospects in NSW,” Berejiklian said.

“It is clear that NSW remains the best state in which to live, work and do business.”