Swan insists on resiliency of the Australian economy
Federal Treasurer Wayne Swan maintained his stance that the Australian economy remains resilient despite the mere 0.2 percent growth it posted in the September quarter, admitting that road bumps may be present but the country's economic fundamentals and growth prospects are solidly in place.
The Australian Bureau of Statistics (ABS) said on Wednesday that the economy barely grew in the last three months leading to September yet Mr Swan kept his optimism and declared that the economic outlook is upbeat on the back of the new gross domestic product (GDP) numbers.
He stressed that the latest GDP could be considered solid in light of the fragile environment prevailing in other major economies, asserting too that the not-so-impressive economic results came not as a surprise if economists must consider the uncertain global economy, the rising Australian currency and the absence of federal stimulus projects.
The Australian economy, according to Mr Swan, currently stands on huge investments, job creation and fiscal consolidation that he said would be the key factors in ensuring that a budget surplus would be attained in 2013.
As the new ABS data showed, household consumption jumped by 0.6 percent in the September quarter and that growth was supported by the more than 100,000 employments generated during the last three months.
While such encouraging indicators could prod the economic policy makers of Australia to be confident enough, Mr Swan said that being complacent was far from his mind as he gave assurance that "we are determined to continue our plans to build a stronger, broader, more competitive economy so we can stay ahead of the pack."
As the Reserve Bank of Australia (RBA) has confirmed this week, a new round of mining boom is upcoming and the federal treasurer is all set to aptly prepare the country for the challenges that lie ahead along with the promise of prosperity.
The Labor-led government is dead set to embark on a well-managed expenditure as a springboard for the next mining boom as Mr Swan said that measures are being prepared to effectively deal with the challenges of a high Australian dollar and skill shortages that could affect the employment demands of the expanding mining industry.
Higher export earning may significantly fatten the national coffers but Mr Swan said that the federal government is bent in ensuring that government savings would reach record levels, with sufficient focus too on raising Australia's superannuation and bolster the country's super guarantee.
Along with savings-generating policies, Mr Swan said that the government would see to it that productivity on all sectors would be enhanced as suggested by RBA governor Glenn Stevens.
Also, the deputy prime minister belied claims by the opposition that the RBA is adopting a critical tone on government's handling of the economy as Mr Swan clarified that Mr Stevens was simply amplifying his analysis on the economic state and politely suggesting of viable alternatives that Australian leaders could consider in addressing the present and future concerns of the economy.