The Reserve Bank Governor, Glenn Stevens, has commented that he believes Australia is well placed to emerge strongly from the current global financial crisis.
In his address to James Cook University’s Business Excellence Series in Townsville yesterday, Stevens was confident that Australia will see significant growth in the future.
“We are likely to see significant growth in public spending over the year ahead, reflecting fiscal policy decisions. Also the pick-up in borrowing for housing that we have been seeing for about six months is what would be expected if an upturn in residential investment spending is to begin later in the year,” he said.
“Overall, our expectation remains that the economy will be well placed for expansion towards the end of this year.”
Stevens emphasised that it is difficult to effectively predict turning points in an economy, but was enthusiastic about Australia’s prospects.
“Picking cyclical turning points is notoriously hard – even in hindsight, let alone ahead of time. But I think Australia is as well positioned as any country, and better than most, to enjoy a new expansion,” he said.
He also furthered by claiming that in the long term, Australia’s prospects look very promising.
“There are grounds to think that we can emerge from the current global recession with our economy largely free of the problems in the financial sector, the stresses on public finances and the general disillusionment facing a number of other countries,” he said.
“Keeping to prudent policy frameworks and settings, maintaining flexibility, focusing on productivity and pursuing the opportunities arising from the growing engagement with the Asian region will all be part of a prosperous future.”