Australian economy benefitting from strong shares.
Australia’s economy isn’t just recovering after the recession, it’s literally bouncing back to full health as Australian shares outperform both the US and the UK to make the Australian sharemarket one of the best performing in the developed world for the past 110 years!
Australia has been making returns of around 7.5% each year since 1900 whereas the UK has trailed behind at 5.5%. Even the US, which has been named fourth best performing country by Fidelity International, has only managed 5.9%.
It is just another example of how the Australian economy is growing at a spectacular rate – almost as fast as the Australian population!
A report by the Reserve Bank has praised Australia’s economy and said that disposable income has increased by around 3.5%. Net worth per household also increased by 11%.
But the buoyant economy is not good news for everyone. First time buyers are struggling to get onto the property ladder due to a 10% increase in house prices. Numbers of young people owning their own homes are now at an all time low, despite government grant increases. Calls are being made upon the government to make it easier for young people to get a mortgage.
Australia has also just signed what could be the biggest gas deal ever seen with China, proving that vital economic relations with the two countries are still as strong as ever. The $54 billion deal will see China being supplied with liquefied natural gas, most of it from gas reserves in Western Australia. The current boom in the Australian state is proving good news for potential migrants to Australia as WA seek skilled migrants to fill shortages.
Prime Minister Kevin Rudd has previously stated how Australia depends upon immigration to keep the economy strong.
With low unemployment rates and rising disposable incomes is it any wonder that more people choose to emigrate to Australia than anywhere else? Yet with recent Australian immigration changes, potential migrants are advised to research types of visas carefully to strengthen their chances of having their applications accepted.
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