According to survey released
last Wednesday, November 16, 2011, “The Australian economy is growing at an
annual pace close to the projected long-term trend. The survey was by Westpac Banking
Corporation and the Melbourne Institute. CommSec’s State Report believed that
Western Australian have the strongest performing economy within Australia. Despite
growth slowing due to the global financial crisis, Australia was one of the few
advanced economics to escape recession. Australia can fully benefit from improved
terms of trade because of the mining boom. Tax reform also plays a key role in stepping
the right direction to reduce the company tax rate.
The NSW Treasurer, the Hon.
Mike Baird MP, went on to state; “Conditions in some NSW industries exposed to
the high Australian dollar are subdued, particularly in tourism and
manufacturing. The NSW retail sector is also soft reflecting increased
household caution as evidenced by the rising saving ratio and recently
declining consumer confidence. There is a significant divergence between
sectors, though, with strong conditions currently in the NSW mining, farm,
business services and household services sectors.” They are expected to remain
at a high level over the next two years as a result of elevated export prices
and subdued import prices. Mining boom also could permanently raise household
incomes in Australia.