After the Boom: Australia has enjoyed more than two decades of recession-free growth, weathering storms from the Asian financial crisis of 1997 to the 2008 global credit freeze, and more recently, the U.S. and European fiscal crisis. In 2013, Australia’s resilience will undergo another test from weaker growth in major developed economies, and the debate about its dependence on China will re-emerge as the resource investment boom nears a peak.
Australian Treasurer Wayne Swan said he supports Federal Reserve Chairman Ben S. Bernanke’s quantitative easing and Japanese Prime Minister Shinzo Abe’s reflation policy, in contrast to Europe’s hazardous pursuit of austerity as the world economy struggles to shake off the global financial crisis.
Australia’s strong currency, a deceleration in resource investment from a peak this year, and tightening of government spending are likely to hurt growth in 2013, central bank Assistant Governor Christopher Kent said.
Australia’s $65 billion of projects to export liquefied natural gas from the east coast are set to push up domestic prices for the fuel, opening the way for record investment at home in competing energy sources to produce power.
A furnished two-bedroom apartment in Port Hedland, the world’s biggest bulk export terminal, on Australia’s cyclone-battered north-western coast rents for almost the price of a three-bedroom penthouse in Manhattan.
The Bloomberg Australia Economic Summit will examine issues confronting Australia in 2013. We will convene government officials, business leaders and industry titans in banking, economics, energy and commodities and examine Australia’s position as standout performer in a world economy that’s struggling to find a leader.
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