Australia well-placed for any downturn: Shorten

19 Jan 2012, 11:17 am   -   Source: AAP
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Mr Shorten said inflation had been contained, unemployment was low and government debt was lower than that of many other nations. (AAP)

Mr Shorten said inflation had been contained, unemployment was low and government debt was lower than that of many other nations. (AAP)

Acting Treasurer Bill Shorten says Australia is in better shape than other countries to deal with another global downturn.

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Acting Treasurer Bill Shorten says Australia is well placed to deal with a major global downturn.

The World Bank has warned that the global economy is heading towards a recession that could be worse than the global financial crisis (GFC) of 2008.

It has drastically reduced its global economic forecasts to a 2.5 per cent expansion this year and 3.1 per cent in 2013.

The bank's June forecast was 3.6 per cent growth for both years.

"I do believe that it (the World Bank's forecast) does serve to highlight the relative strength of the Australian economy," Mr Shorten told ABC Radio.

"I think it will be harder for Australia, but I don't think we're in the same boat as European or other developed nations because we have some strengths and some numbers which I think contrast favourably."

While warning against complacency, Mr Shorten said inflation had been contained, unemployment was low and government debt was lower than that of many other nations.

Australia had come out of the GFC stronger than other nations.

"It is worth noting the United States. They have cited their economy as only just returning to what they were in 2008. We've grown by seven per cent.

"So, there's no doubt that we're better placed, but it will still be difficult."

Mr Shorten said Australia was well-placed to deepen economic engagement with Asia as the region's economic importance increased.

"In the short-term, times are difficult. In the medium-term ... we are in a relatively better position than our traditional comparators around the Western world."

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Your Comments

lucky

mark - from moonta, 4 months ago

aussies have no idea how well of they are.They whinge and complain about everything .They should all move to greece for a year then they would have something to whing about stimulus allways helps a economy. not austerity .well done labor.

point of order

Elija - from Falls Creek, 4 months ago

We're not as "well placed" to deal with any global financial downturn as we were before your party squandered our surplus are we Bill.

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