Australia Market
Australian economy in 2011 how to get rid of imbalances
In the mining boom, the Australian dollar continued to firm in the context of Australia becoming a significant imbalance in economic development. At present, mining and some other hot and cold contrast of the large sectors of the economy, can be used to describe the imbalance. How out of the hot and cold imbalances have become about the economy can achieve sustained growth in Australia's major issue.Mining giant BHP Billiton has announced that from 2010 to 2011 fiscal year, BHP Billiton net profit of up to $ 23.7 billion, compared with almost double the previous fiscal year, a record high.
Than earned pours BHP Billiton, Australia Boggs Iron and Steel Company is not better than the day. The company recently announced that the company will be forced to shut down its two mills, which will result in 1,400 job losses. Previously, the company announced losses of over $ 1 billion. In addition, Qantas Airways, Australia's first steel company, Westpac and the retail giant Walworth's have also announced that the company had losses and layoffs news decisions.
In this regard, Australia's central bank governor Glenn Stevens admitted that the economic downturn in the global context, the present imbalances in economic development still can not find the situation to avoid the method.
Australia is the source of economic imbalances, the prospects for recovery in the global economy turns bleak backdrop, a prosperous mining overdraft of economic resources, a serious squeeze on other sectors. Post-crisis era, mining, power to absorb a lot of investment in Australia, bringing soaring Australian dollar, high inflation, local labor shortages, is expected to increase interest rates and other issues. In the above-mentioned factors, the Australian domestic manufacturing, tourism, construction, food industry and retail sector experienced a decline in competitiveness, rising raw material prices and the financing costs and other pressures.
To solve this problem, Australian politics, business and trade unions in the recent race to offer advice and suggestions, introduced a number of plausible but conflicting solutions.
Last half year, the Australian Federal Government introduced mineral resources rental tax intensive program and a carbon tax program, directed at the huge profits of the resources and energy companies. In response, BHP Billiton Chief Executive Officer Reese made, Australia should urgently address the decline in labor productivity, rather than working to increase taxes, because tax increases will only further push up production costs and inflation.
Some trade unions and manufacturing companies, suggests that the weak dollar, Australian dollar difficult to curb the momentum of the occasion, some developing countries should be to put pressure on their currencies in order to improve Australia's international competitiveness related businesses.
This view reflects the Australian community economic development plan for solving thinking, but because of the limitations of their respective positions, some of the proposals can not help but inaccurate, and even includes the protectionist tendencies, which undoubtedly is not conducive to long-term economic development, is not conducive with the major trading partners to develop friendly relations.
At present, promote inter-sectoral capital in various industries to achieve a more balanced layout, should be an important focus is to solve the problem. This requires policy makers to further innovative ideas to enrich the content of external trade and economic cooperation, agriculture, tourism, education, science and technology policy to provide more effective support for economic development reserve space.