Speaking at the Allianz Workers’ Compensation National Seminar in Sydney today, Access Economics director Chris Richardson said that Australia has been “floating on a sea of stimulus”, and that the recovery may not be as “flash” as we initially thought.
Speaking on the strength of the Australian economy and what we can expect over the next couple of years, Richardson said that while Australia has faired better than other advanced economies, we are not out of the woods yet.
He attributed the strength of the Australian economy to the relative health of our banks, the Federal Government’s stimulus package, low interest rates, the housing market, a flexible labour market and rapid population growth.
Richardson said the stimulus really helped to lift the economy, but with the stimulus due to be phased out, the recovery may not be as rapid or as flash.
“I hesitate to say we have dodged a bullet, more that we have outrun it because of the stimulus,” he said.
“The green shoots are real, but we are not out of the woods yet,” he added.
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