Positive Outlook for Australia

According to the half-yearly Business Day’s economic survey, Australia’s financial outlook looks stable regardless of the economic problems in Europe. Whether or not Greece remains with the Eurozone, the crisis will not affect Australia because of the steady demand for minerals from India and China and the thriving mining construction sector.

The panel, however, expects that Greece will stay with the Eurozone.

The 22 forecasters predicted that Australia’s gross domestic product in the next 12 months will see growth by 2.9 per cent and global output will grow to 3.2 per cent.

Though the outlook for the mining sector is positive with more iron and coal projects in the future, it is not so good news for the retailing and manufacturing sectors.

Retailers are giving huge discounts according to NAB’s Alan Oster. It is also suggested by BT’s Chris Caton that retail owners should work out a scheme with their landlords to bring the rent down.

Manufacturing is down because of the influx of imported goods due to the subsidized policy.

In agriculture, there is a great demand for high-protein food so the future seems optimistic for this sector. However, small family farmers may still feel the brunt of the crisis.

It is also forecasted that the mining construction will peak in 2014 and after which will no longer give significant contribution to Australia’s growth.

Australia can look forward to the share market rising over 2012-13, the stability of the Aussie dollar and the stabilization of the unemployment rate at 5.5 per cent.