The IMF have predicted a gloomy future for the Australian economy, but the RBA remain optimistic, with Governor Glenn Stevens believing we are better positioned to ride out the economic storm than most countries.
According to Chris Richardson, director of Access Economics, Mr Stevens optimism is a more accurate representation of Australia’s resilience. While he said “there’s elements of truth to both (points of view)”, Australia is “rather better off than the average.”
“I think the story is that Australia is rather better off than most of the other rich nations around the world. Our recession will be smaller, our longer term prospects are better and in particular we have a healthy banking system whereas much of the world doesn’t. But the IMF is right, that the world is in real trouble, then other things equal, that means Australia’s in trouble too,” Mr Richardson said on ABC radio yesterday.
He believes that the IMF is sensing trouble ahead, which is true, but it is important for Australians to remain positive.
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