An economic analyst claims that former Prime Minister Tony Abbott’s ‘Australia is open for business’ catch cry has not helped make the Australian economy stronger.
In an analysis by Stephen Koukoulas posted in Yahoo Finance, he claimed that the catch cry is not working out even until the current administration. According to Koukoulas, the Australian stock market (the ASX 200) is down by an estimated value of seven percent since the election. Before this time, the US S&P500 stock index has risen by 13 percent. Koukoulas claims that it is the under-performance of Australian companies since the Coalition resume office that caused the sudden plunge of the stock market.
Koukoulas also mentions that then Treasurer Joe Hockey delivered a speech that Australia was not only open for business, but that the country was also “open for investment and is going for growth.” However, the investment results were not good. The Australian Bureau of Statistics Private Sector Capital Expenditure Survey reveals that business investments have fallen every quarter in two straight years since the election. Public investments also fell to almost ten percent.
The Australian dollar is down to almost 23 percent since the election. It tries to fuel up in tourism, education, and manufactured exports. Koukoulas clears that the Coalition is not solely to be blamed for this economic problems, but it is responsible for giving false hope to the business sector through their rhetoric.
Despite the slowing of Australian economy, Australia Network News earlier reported that there are industries that will boom this 2016. The five major industries that are expected to boom are the cotton industry, organic farming, internet publishing and broadcasting, housewares, and education.
The Business Insider reported that the Australian economy is not free from problems, but the Australian Treasury remains optimistic amid these challenges.