PM Gillard Touts Robust Economy amidst Global Challenges
The euro crisis is definitely worrisome, Prime Minister Julia Gillard said on Friday, but Australians can look forward on a robust economy, which she added is supported by an investment pipeline totalling to about $450 billion.
Attending the ground-breaking ceremony of the $34-billion liquefied natural gas (LNG) project by Inpex of Japan in Darwin, Ms Gillard said that the country should be confident enough that it can weather the worst of the financial storm brewing in Europe and possibly in the United States too.
She reminded her audience that the country stood out as the probably the only economy that came out the last global financial crisis in 2008 virtually without bruises and most likely, in the event that the global economic conditions takes a turn for the worse, Australia can replicate the same feat.
"We can be confident about the Australian economy because there are so many investments like this one in the pipeline - more than $450 billion of investments," the Prime Minister was reported by the Australian Associated Press (AAP) as saying on Friday.
Ms Gillard added that the new resource venture by Japanese investors in the Northern Territory represents a 'fantastic opportunity' for the region, which she reiterated was but part of the ongoing resources boom that has been driving up the domestic economy.
Earlier economic indicators pointed to the fact that Australia has been experiencing figures that underscored the country's better economic fundamentals, Ms Gillard stressed, as proven by its better inflation and jobless rates when compared to those of other economies.
The Inpex LNG project was formally unveiled as Greece flirts with the possibility of exiting the eurozone, with economists betting that difficulties battering the Spanish and Portuguese economies could soon prod them to follow suit.
As of the afternoon trading, the local bourse bled by some two per cent as global investors panic on news that Spain's economy may be ravaged by a bank run, on top of the 25 per cent unemployment rate last registered in the country.
The prime minister admitted that such developments generates stress and strains on the local economy, specifically on the ever-rising Australian dollar, the effect of which further dampens the recovery hopes of many industries not directly benefitting from the country's mining projects.
Ms Gillard said that federal authorities are well-aware that the country's two-speed economy has been a challenge for many key industries, with the government identifying retail, service, manufacturing and tourism as among the hardest-hit sectors.
Despite the difficulties, Ms Gillard noted that these sectors have been displaying resiliency in keeping up with the competition, realising considerable profits and allowing Australians to keep their jobs.