Australia – Economic green shoots post-GFC
Due to its close interdependence with emerging Asian markets, the Australian economy has been able to weather the global downturn, positioning itself as a haven for international business investment with a promising outlook of steady growth in the near future.
With many of the worlds major economies facing far more sober prospects, it’s the Australian economy that has sprouted the greenest of grass shoots post GFC. For the financial year 2010, Australia’s GDP grew 3.3%, compared to the United States at 2.9% and the United Kingdom at 1.7% growth.
The strength of the Australian economy is in part due to policy reform such as financial deregulation, recent major changes to the taxation system and improved labour and industrial relations. It has also been helped by low interest rates as well as low unemployment and a stable rate of inflation together with a greater than expected demand for our resources (especially from China and India).
Australia’s attractive business environment characterised by favourable market conditions, a highly skilled, diverse and well-educated workforce and vast natural resources combine to position its economy as one of the most attractive for foreign investment in the world. Add to this the fact that Australia is in a very favourable position to access emerging Asian markets, and the combination of federal and state incentives for those prepared to locate their regional headquarters there, and the picture becomes even more appealing.
