The recession we never had - Australia

[trev]

For the last 6 months or so, every economist has said Australia is dropping into recession. These views were reinforced by small negative growth in the December quarter of 0.5% (2% annualized).
However all have been surprised as growth has resumed in the March quarter at 0.4% (1.6% annualized), and with housing gaining strength allowing with consumer spending and high export growth, this growth may continue at a slow pace, continuing the record period of growth for the Australia economy without a recession of about 17 years.
Over the last 9 months growth has been essentially zero, so although not a recession, Australia as a economy has not really grown, but confidence is building, so there is a high chance of future positive quarters and no recession for many years to come if the global economy does not deteriorate further.

[dannubis]

Australian State Seeks A$15 Billion for Ports, Rail

By Jesse Riseborough

June 2 (Bloomberg) -- Australia’s Queensland state is seeking to raise A$15 billion ($12 billion) selling its entire coal railroad network and two export ports to make up an expected revenue shortfall.
The Abbot Point coal terminal, the Port of Brisbane, the state’s coal railroad business and other assets are for sale, Premier Anna Bligh told state parliament today, according to a copy of the speech on the government’s Web site. The sales are to be completed over the next three to five years, she said.
The worst recession since World War II has also prompted Babcock & Brown Infrastructure Group to consider bids for Queensland’s Dalrymple Bay port, the nation’s second-biggest coal export terminal. BHP Billiton Ltd. and Xstrata Plc are among producers in Australia’s biggest coal shipping state.
“This global financial crisis has caused us to examine our asset base in light of current challenges and modern priorities,” Bligh said. “The challenges of this century demand we subsidize public transport, not the freight transport requirements of coal companies.”
Queensland, the nation’s third-most populous state, needs to sell the assets to help fill an estimated A$14 billion slump in revenue over the next four years as the recession crimps government earnings. Selling the assets means the state will avoid a further A$12 billion of required investment over the next five years, Bligh said.
Coal Prices
The sale of coal assets in the state comes amid a 57 percent slump in prices for coking coal this year as global demand for the steelmaking raw material plummeted.
Queensland Rail is Australia’s largest coal transporter and the sale of its non-passenger assets could fetch A$7 billion, Bligh said. Queensland Rail operates 550 coal services a week from 56 mines in two states and also runs Queensland’s passenger train network. In the 2008 fiscal year, Queensland Rail hauled 184 million metric tons of coal.
Abbot Point, Australia’s most northerly coal port, is located 25 kilometers (16 miles) north of Bowen and has an annual capacity of 25 million tons. The terminal is operated by the Australian coal unit of Xstrata, the world’s biggest exporter of power station coal. Abbot Point shipped 12.5 million tons of coal and handled 169 ships in the 2008 fiscal year, according to the Ports Corp. of Queensland.
The Port of Brisbane is the nation’s biggest exporter of beef and cotton, handling about half of the country’s exports for both commodities, according to the port’s Web site.
The state is also seeking to sell Queensland Motorways Ltd. and Forest Plantations Queensland, Bligh said.

http://www.bloomberg.com/apps/news?pid=20601080&sid=aWBBC4R7_0_0&refer=asia

[Asher]

One of the advantages of being an isolated, insignificant nation is that it helps you buck global trends.

[trev]

One of the advantages of being an isolated, insignificant nation is that it helps you buck global trends.

WRONG
It is the continuing demand from China for our raw materials that is acting as a stimuli to our economy, China's demand being high due to their huge stimulus package. Also a well regulated banking sector with low levels of bad loans and huge profits helps too. But it is mostly China and its growth that acts as an engine to our economy, not isolation. As a percentage of GDP, our external sector is higher than most countries.

[Asher]

So you're not isolated, you're China's *****.

[Kitschum]

I love Australia. It's a country with great contrasts.

Anyway, in times of crisis, the Chinese, other third-worlders and kooky Westerners hoard gold (see the other thread) and the wealthiest part of Australia lives off gold mining. Works for me.

[Riesstiu IV]

So you're not isolated, you're China's *****.

Are you trying to turn trev into Dale 2.0?

[DanS]

One of the advantages of being an isolated, insignificant nation is that it helps you buck global trends.

Yes, backwater colonies of the United Kingdom, like Australia and Canada, do have their good points, believe it or not. It's not all kissing the queen's lily white bulging ass.

[Asher]

Yes, backwater colonies of the United Kingdom, like Australia and Canada, do have their good points, believe it or not. It's not all kissing the queen's lily white bulging ass.

Check your jealousy at the door.

[kittenOFchaos]

So you're not isolated, you're China's *****.

Where can Britain sign up?

[Ben Kenobi]

Yes, backwater colonies of the United Kingdom, like Australia and Canada, do have their good points, believe it or not. It's not all kissing the queen's lily white bulging ass.

Better the Queens ass then the alternative.

[trev]

Growth in Australia continues to accelerate with the June quarters GDP growing at 0.6% (2.5% annualized) for the quarter. Generally this is good, but the reserve bank here is llikely to begin increasing interest rates to fight inflation as the core inflation rate is still considered too high at above 3%. As interest rates are currently set at 3% by the central bank, lowish by our standards but well above many countries, it is disappointing that it may begin rising again so soon after I was starting to appreciate the lower mortgage rates on my house.

[Dis]

sounds nice. The recession is hitting my area very hard.

So would they let an American immigrate to Australia? I suppose I'd have to learn the language first. It seems like American lets everyone in, but other countries don't let americans in. I hate living in a screwed up country. I want to live somewhere without rampant violent crime.

p.s. I was kidding about the language bit

[trev]

Very few restrictions on highly educated migrants at all,we are too lazy to educate enough people ourselves, if you do not fit the needed skills categories it is more difficult to migrate here, but anyone with a sponsoring employer has a good chance. So locate a job and get your employer to sponsor you.

[MRT144]

Sad fact; You're still Australian.