The year started with unstable Australian economy reports and diminishing commodity prices, yet the nation has managed to avoid recession, a new report suggested.
Economic forecaster and industry analyst BIS Sharpnel has released the latest set of data that has revealed that it is the steady growth in the mining sector and stability in export levels that has helped Aussies to stay safe from potential recession perspectives. It has discovered that other nations that have faced a decline in commodity prices have been affected by the economic turmoil, but the low-cost production that Australia supports has aided it towards enjoying a steady stand during the worldwide recession crisis.
The industry analyst has found in the report that resource-bound nations like Russia and Brazil have also been affected by recession following the slowdown in their rate and frequency of trade.
“Australia is a low-cost, high quality resources exporter, and the other countries simply cannot compete with that,” BIS’s Chief Economist Frank Gelber said. “While prices are a lot lower, we are very low cost producers and so we’ve been able to maintain our share of exports, or more than our share of exports.”
The Australian Mining reported that the ability of the Aussies to fill up the supply gap that has affected the market is the main reason that helped it survive the turmoil affecting other countries around the globe. Gelber confirmed that Canada slipped into recession in the very first half of 2015 but has been recovering since then and was successful. He added that Russia and Brazil have also been benefitted a lot by the commodity price boom in the past 10 years, but are running in recession at the moment.
The ABC reported that that 2016 is just the second year that recorded the expected decline to continue to two or three more years. “The main reason [Australia hasn’t experienced a recession] has been strong and sustained growth in resource production and export volumes – around eight per cent per annum in each of its past three years – aided recently by surging education and tourism exports,” Gelber said. “Without this export volume growth, Australia would have gone into recession.”