Australia's economic crisis is a myth

Wednesday, 24 July 2013  Media Alerts

An honorary professor at UNSW's Aust​​​ralian School of Business says some politicians claim the Australian economy is suffering from a major crisis of ballooning government debt and an impending crash. He says this is patently not the case - the way the economy has continued to grow shows it really is the miracle economy.

Honorary Professor Raja Junankar from the Industrial Relations Research Centre says "Most of the countries of the OECD are still suffering from the Global Financial Crisis (GFC) - or as the Americans call it the Great Recession. However the Australian economy is still very healthy. Admittedly in the past few months, it appears that the Australian economy is finally slowing down as the resources boom comes to an end, however unlike most of the OECD countries, Australia did not have a recession, and indeed remained very healthy."

However he says much rhetoric about the economy seems to ignore this. "For example, if you look at the unemployment rate it increased slightly after the GFC, but it came down again. All the other countries had higher unemployment rates than Australia in the post-2008 period. This period of record low unemployment seems to be frequently ignored in discussions about the economy."

In major new evidence based research, called "Australia: The Miracle Economy" Professor Raja Junankar shows how well Australian economy has fared over the past few years, compared to other OECD countries.

"Looking at the Debt to GDP ratios Australia has the lowest ratio. Even Germany, the country that is imposing austerity on the eurozone countries, has higher debt ratios," he says. "If you listen to some politicians they believe that Australia is in debt crisis - but actually, Australia is in a far better situation than pretty much every other country. Until the population start listening to some of the facts, rather than myths about the economy, this talk will dominate rather than that facts."

For further comment email raja.junankar@unsw.edu.au

Media contacts: Julian Lorkin: 02 9385 1574

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