As home loan brokers, we have closely examined the finances of a lot of people in the Kwinana area. We get to know your finances so we can help you get the right loan for your individual situation. Over the years, we have heard a lot of clients lament the state of the economy. But is it really that bad compared to the rest of the world?
Recently, Peter Switzer of Switzer Daily put forth a persuasive argument that Australia has the best economy in the world. While we don’t pretend to know everyone else’s economy, he made a lot of good points. We can’t really say whether or not Australia has the “best” economy in the world but what we can take from his arguments is that it isn’t nearly as bad as a lot of people think right now. Here are some of the points he made.
Australia has not had a true recession in 25 years. Even during the Global Financial Crisis (GFC), when US unemployment went over 10%, ours stayed relatively low at 6%.
Our newest reports of economic growth came in at roughly 3% after predictions of 2.5% by most economists. This is beating both the US and UK, even though both have cash interest rates close to 0%. In the US, some are arguing that their growth is closer to 1% than 3%.
Our term interest rates are currently in another class compared to other major economies. Our unemployment rate is holding on at 5.8% with predictions for 5.5% by the end of the year. Remember that we have weathered the end of the mining boom and the resulting contraction of the resources industry.
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So, what does this mean to you? It means to tune out the noise and realise that things aren’t nearly as bad as we sometimes think they are.