Australia's economy 'survives' drought

[Bianca S]

Aus economy survives drought

07/03/2007 08:59

Sydney - Australia's economy shrugged off the impact of the worst drought in a century to post its highest growth rate in 18-months, data showed on Wednesday, although the central bank warned a slowdown was looming.

and...

Costello said high employment and good wage growth helped the non-farm economy grew 1.4% in the December quarter and 3.5% year-on-year.

"What this gives you is a snapshot of an economy which has been severely buffeted on one hand by drought and a severe drop in production," he said.

"But (it's) been conversely lifted on the other hand by mining prices and the bulk of the Australian economy, which is in wholesale, retail, manufacturing and service industries, being kept strong by high employment levels and rising wages."

Prime Minister John Howard said the 1.0% quarterly growth rate was good news.

"That is a fantastic figure given that there's been a catastrophic decline in farm (output) because of the worst drought in 100 years," he told reporters.

"Just imagine where our growth figure would have been if we had not had this terrible drought.

rest of article here:

http://www.fin24.co.za/articles/int_compan...18-1783_2079746

Edited March 7, 2007 by Bianca S

[kangaroo]

This indeed sounds good. Thanks Bianca S for the article.

It's encouraging to know that Australia's economic growth is not solely dependent on the agricultural sector, although I sure do hope and pray that the drought will be alleviated soon.

I was advised by a friend who knows of my Oz plans to read an article in Landbouweekblad the other day, outlining what a difficult time the Australian farmers are having in making sure their endeavours are sustainable - especially with regard to sheep and cattle farming.

Their efforts in the face of the drought is truly admirable and commendable.

I cannot find the link to that particular article, but you can also have a look at the following article, in Afrikaans, SA, Australië wag vir natter dae

Let's hope El Niño soon loses its strength so that rainfall can return to 'normal'!

[ocean3]

I don't mean to put a dampener on things but why do you think that one Australian farmer commits suicide every four days I try not to think about bad things happening over there, but have heard it from so many people over there and read it on a number of sites about the "worst drought in 100 years"...there must be some truth in it. Just curious why this should be . I just can't imagine any farmer from Zim taking that route when there are 40 war vets at the gate!

On a brighter note, I have read that El Nino is set to weeken, and even be replaced by El Nina in some areas. Sydney and Brisbane have already had some relief by the looks of reports. Although the dam levels are still very low in Brisbane & Perth. WA seem to have avoided the political wrangle in the East and put up a massive desalination plant which supplies some 20% of the supply. They should put in pipelines from the North...but that seems to be under constant debate as well.

At least things are being discussed and planned for...a lot more than what one experiences in SA

Edited March 13, 2007 by ocean3

[Bianca S]

I

At least things are being discussed and planned for...a lot more than what one experiences in SA

looks positive!

[Bob]

You'll find Australia's economy is fairly robust.

When the Asian stock market crash occurred in 1998, economists thought that Australia would be sucked into the storm of the crisis.

Stock markets took a dive in Indonesia, Malaysia and the Philippines with hardly a blip on the Australian market.

The industrial might and demand of China was cited as being the main reason it held up so well then and the Chinese and Indian economies don't look like slowing down a lot in the near future.