Australian Economy 'In Better Shape Than Others'

Sponsored Links

The Australian economy is in a much better position than other advanced economies due to its ties to Asia, a senior Reserve Bank of Australia official says.

RBA Assistant Governor Philip Lowe said the Australian economy is set to outperform its counterparts in the next few years led by solid consumer demand, high employment and exports to Asia.

"Unlike many other advanced economies, employment has recently grown strongly and the level of investment remains high," the central banker told an economic forum in Sydney on Thursday.

He added that the economy is benefitting from high commodity prices and links to Asia, with about 70% of the nation's exports destined to the continent.

The Reserve Bank of Australia expects the economy to grow by 3.25% to 3.50% this year and the next - slightly better than the average of the past two decades.

"Risks of course remain, both in advanced economies and in Asia," said Lowe.

"But the central scenario for Australia remains a positive one, with the challenges that we are likely to face being quite different from those facing the other advanced economies."

The Australian economy is in a much better position than other advanced economies due to its ties to Asia, a senior Reserve Bank of Australia official says. (Market News Provided by RTTNews)