Wednesday Februrary 25, 2009

This isn't just a short-term shock to the economy
 
Last week, the Reserve Bank of Australia appeared before the House of Representatives Standing Committee on Economics saying that the outlook for the economy is ‘near-term weakness’ but Australia is ‘well placed to benefit from a renewed expansion’.
 
Leading industry analyst and economic forecaster BIS Shrapnel agrees that Australia does not have the same issues as other developed nations as a result of the global financial crisis – Australia is experiencing a credit squeeze not a financial crisis – but the shortage of both debt and equity funding will be disastrous for business investment.
 
BIS Shrapnel's chief economist, Dr Frank Gelber, says we need to look beyond the current situation to understand how the Australian economy will fare over the next five years. 

Contact: Frank Gelber