Is Australia Heading for its 15th Year of Growth?

LATEST AUSTRALIAN BUSINESS NEWS

There is some concern today that the Australian economy over the next 12 months might not have the same strength in growth as it has experienced over the past year. The Australian financial year runs from 1 July to 30 June, so there is now plenty of speculation as to what the forthcoming year holds. The question on all commentators’ lips is will the Australian economy enjoy a 15^th year of growth in 2005/06?

Yesterday the latest balance of trade figures again showed that Australia was importing more goods and services than it was exporting. Its major import market is the USA with Japan still its major export market. The trade deficit though shrank when compared to the two prior months but a 2% increase in ex ports was equally offset by a 2% rise in imports.

Inflation is stable at 2.7%. This is a figure that is probably a little higher than the government would like. The target rate is between 2% and 3%.

Even though the housing sector is in a slight decline with mortgage sales down more than 9% last month, other areas of the economy show resilience – for instance the employment market is the best it has been for over 20 years. Unemployment is currently at 5.3%.

The Reserve Bank of Australia (RBA) will release its latest view on interest rates tomorrow – it is expected that there will be no change.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com