Tuesday, September 10, 2013

The Challenge Facing The Aussie Economy

The economic boom experienced in Australia over the last few years has gone unnoticed by most of us is Europe.  Yet its difficult to believe that despite the financial melt down experienced in the UK, Europe and the US has not spread to all parts of the world.

There was a saying that 'when America sneezes the rest of the world catches a cold', in fact I first heard this phrase via the BBC back in 2008.  However, it appears that the sneeze didn't reach our friends down under in Aus.

Yet its not just geographical distance that has saved the Aussies from the crisis effecting the rest of the globe.  Rather than suffering the economic strains of recession, Australians have been in the midst of a major economic boom.  Difficult to believe I know, but for those of us that have been out to Aus recently and can testify to how expensive everything is can testify that this is 'boom times' for the land of plenty.

Exactly why Australia is experience such tremendous growth is a question causing much debate, particularly as many are going on public record as stating that the boom is due primarily to Australia harvesting its own natural resources (oil, gas minerals) at a rate never seen before.

Where Australia will be in another 20 years or so is up for debate, but it certainly looks like they are selling the family silver from where I'm standing.