As a result of Australia's prudent fiscal policies, the OECD
Economic Outlook recently put Australia's economic growth and
employment outlook in the limelight. Burgeoning demand from Asia
for resources may help Australia's exchange traded fund (
) weather the current market turbulence.
The Organization Economic Co-operation and Development's (
) report highlighted Australia's strong economic management in
fighting off the global recession and its ability to return the
budget to surplus three years ahead of scheduling and halving peak
according to eGov Monitor
The OECD has revised upward Australia's growth forecasts to grow
by 3.2% in 2010 and 3.6% in 2011 - OECD area as a whole is
estimated to grow 2.7% in 2010 and 2.8% in 2011. The group projects
Australia's unemployment rate will decrease to 4.8% by the end of
2011, as compared to 8% for the whole of the OECD area.
The OECD also added that "companies in the mining sector should
benefit in particular from the dynamism of Asian markets and the
significant pick-up in the terms of trade." [
Possible Mining Tax Smacks Gold Miner, Australia
The Australian index of leading economic indicators inched up
0.9% in March to 260.9, or an annualized rate of 8.7%,
reports Jacob Greber for BusinessWeek
. The coincident index, a measure of the current state of the
economy, rose 0.2% to 248.6 points.
Gains in March were bolstered by higher stock prices, real money
supply and housing approvals. However, Bill Evans, chief economist
at Westpac Banking Corp. in Sydney, cautions that deteriorating
economic conditions in April and May could cause "considerable
correction to the leading index over the next few months."
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