Wednesday, September 21, 2011

Australia Cost of Living

Australia's economy has become increasingly dependent on mining resources for growth, with manufacturers forced to cut jobs and production as they have contended with the strongest exchange rate in three decades which has made exports prohibitively expensive. The Australian dollar has soared approximately 23 percent in the past two years. Australia is however the only major developed economy to avoid a recession in the aftermath of the global financial crisis. Reserve Bank Governor Glenn Stevens has again kept interest rates at 4.75 percent. Interestingly the RBA board makes decisions on interest rates without publicly revealing the vote of the board. Meanwhile the number of business failures in Australia has risen sharply despite global insolvencies falling to their lowest level in nearly four years. Business failures in Australia rose 12.1 per cent in the June 2011 quarter. Business failures in Australian manufacturing have risen on average by 60 per cent since 2008.

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