Short Lived Growth in Australian Economy

Eurozone debt crisis
The slow but steady growth in the Australian economy seen in the early months of the year 2011 has now proven to be short-lived and a great disappointment. This may have been largely affected by the Eurozone debt crisis which started as early as 2010, but didn’t become heavily influential to the global economy till mid 2011. This has widely indented the prices of foreign imports to Australia, as well as Australian exports.

Falling rates
The Melbourne Institute leading index has found the yearly growth rate to be slowly decreasing, with a drop from a 2.8 per cent growth in September 2011 to 2.6 per cent growth in October, a significant plunge of 0.4 per cent from the average long term trend of 3 per cent growth. According to TheAge.com.au, Bill Evans, Chief Economist of the Westpac Bank was quoted to saying that “The growth rate in the Index has slowed from the 4.4 per cent which was reported for August and is now back below trend.”

Hope for Christmas
Figures for December have yet to come out, but growth in the Australian economy can be expected to take a turn for the better as the annual holiday of Christmas approaches. Christmas shoppers are expected take out fast cash loans and quick loans to make a final purchase spree in the final week of the upcoming holiday, and with shoppers now preferring cash over credit cards, fewer Australians will be coming in debt and withdrawing from retail shopping for the next few months. Boxing Day and New Year’s sales are also expected to boost the number of sales to increase the growth of the Australian economy.

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