Boom in Australia goes bust as global slowdown hits
Originally Posted by OzSucks View Post
ttp://www.abc.net.au/news/stories/2...section=justin
Economists warn of ugly year ahead
Economists are warning Australians they face an ugly year in 2009, with a recession inevitable as the global financial crisis continues.
The fallout from turmoil on the global financial markets is expected to worsen over the next 12 months and into 2010 and Chris Richardson from Access Economics says the new year will see more people affected by the financial crisis.
"So far we've just seen sharemarkets halve, we've seen some sectors like retailers and car dealers hard hit, most people are still doing OK. 2009 will change that," he said.
"This will be an ugly year. Growth will slow, income growth will slow a lot, unemployment will rise, profits will fall quite sharply."
Mr Richardson says it is inevitable Australia's economy will fall into recession.
"Recession is infectious and what's happening around the world is very bad," he said.
"The US will have its worst year since 1982. The same is true for the economies of Europe, Japan will shrink by more than the US or Europe will, China will have its worst year since Tiananmen Square.
"With the other rich nations in the world in recession, we pretty much can't avoid it."
Acting Prime Minister Julia Gillard has told ABC2's News Breakfast the Government is doing what it can to support the economy.
"Are these difficult and unpredictable times? Well, yes they are," she said.
"But what we've done, in view of our own forecasts and the intelligence around the world about the global financial crisis and all of the intelligence here about what it's going to mean for our own economy, is we've done everything, to date, with the aim of protecting jobs and investing in jobs."
Ms Gillard says the Government has moved to stem unemployment and the falling growth rate.
"The economic security statement, a stimulus package, all about keeping the economy moving, keeping people employed," she said.
"The car industry package the same, investment in local governments about local jobs and then, of course, we've got the big infrastructure investments, as well as the COAG money flowing through.
