RBA Governor Glenn Stevens has said that Australia is well placed for economic recovery and will profit from a recovery in global growth, predicted to hit by the end of the year.
In a speech made to the Canadian Australian Chamber of Commerce breakfast this morning, Mr Stevens said that, while it is too soon to tell, he is confident that the Australian economy will recover, as too will Canada.
“There are good grounds to think that both countries should be in a relatively good position and well placed to take part in a renewed international expansion,” Mr Stevens said.
He pointed to the healthy position of our banking sector as a driver to recovery.
“Notwithstanding the global credit crisis, Canadian and Australian banks continue to be profitable and are well capitalised by private investors.
“They have a more conservative lending practise in their home markets than their counterparts.”
Our strong trade ties with China will also help to pull us through said Mr Stevens, as the “volumes of Australian exports had not weakened by as much as many other economies.”
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