Return to boom times predicted for Australia

14 Apr 2010

Source: Transport and Logistics News

Access Economics’ Chris Richardson has predicted the Australian economy will quickly return to the boom times of mid-2008, easily outpacing the world’s recovery from the global economic crisis.
 
Speaking at the 2010 Australian Trucking Convention, Mr Richardson said that as the economy rebounds from the global recession, it is becoming clear Australians can expect a return to the heady days of the resource boom very quickly.
 
“A key question was always going to be just how Australia’s economy responded as interest rates wound back up and as government spending wound back down,” Mr Richardson said.
 
“Recent developments have answered that question clearly – the current round of commodity price increases in coal and iron ore is so huge that Australia’s recovery will quickly go from modest to strong.
 
“The impact of a rapid return to resource boom-time conditions will wind back the clock less than two years to what it was like in Australia in mid-2008.”
 
However, Mr Richardson warned of a downside to the return to a resource boom economy.
 
“While there are many advantages associated with a resource boom in which the world gives additional income to Australia on a platter, some negatives will also be well remembered,” Mr Richardson said.
 
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