Thursday, December 07, 2006

Australia nears State of rescession

NSW on brink of recession By Simon Benson, Political Reporter
[And don't you just feel so confident when political reporters talk economics? Almost as confident as when economic reporters talk politics. While maybe confidence is lacking, it does, however, make for sometimes revealing cross-disciplinary perspective, so long as they declare themselves. See Guambat's profile for a truncated disclosure.]

NSW is barrelling towards a recession with official data revealing it is the worst performing state in mainland Australia.
Reeling from the State Government's failed vendor tax and a collapse of investment, NSW was already facing the most dire economic conditions in more than a decade.

Now the drought and eight interest rate rises since the past federal election in 2004 have plunged the economy into negative territory.

Disturbing national accounts figures have revealed the state's economy has shrunk by 0.3 per cent in the third quarter of the year.

The figures make a mockery of the State Government's promise early this year of economic recovery.

Another negative figure will mean Premier Morris Iemma will go to the polls with the state in recession.

The Australian economy grew by just 0.3 per cent in the third quarter, to be 2.2 per cent higher than a year earlier. Economists had expected GDP to grow by 0.5 per cent.

Now let's see; how does that go again ....?


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