19 January 2009 ninemsn online news reports that a leading economic forecaster has warned its clients to batten down the hatches for the sharpest deceleration Australia’s economy has ever experienced. But Australia is in a better position than almost any other rich nation heading into recession, Access Economics says. And not everyone – especially those who have no reason to fear losing their job – will be impacted adversely by the dramatic slowdown this year. “Really big and bad news is headed our way,” Access said in its Business Outlook for December 2008, released on Monday.
“Conditions are worsening very rapidly. This is not just a recession, it will be the sharpest deceleration Australia’s economy has ever seen.”
Access is predicting a cautious recovery after late 2009, dependent on housing prices – forecast to soften by between five per cent to 8 per cent – and unemployment. The news is not so good for the federal government’s budget which will take a king hit from falling company tax payments, and for the nation’s current account deficit which Access tips to rise from $65 billion this financial year to $100 billion in 2009-10. It warns the Rudd government will not have sufficient money to finance its reform agenda for education, infrastructure, climate change and water management. For the full story, including a list of Access Economics’ forecasts for 2009, click here to visit ninemsn online news.
